With 2013 coming to a close, you may be wondering what we can expect in the real estate market in Northern Virginia next year. Looking back over this year, it’s clear that the market has made a comeback. In fact, the expectations of many economists at this time last year were actually surpassed when the combination of historically low interest rates and low inventories of homes for sale drove up prices. There’s no reason to expect these positive trends to stop any time soon, but the banks can see this as well. So expect mortgage rates to rise.
The beginning of 2013 showed a big increase in buyer demand, but many homeowners waited for prices to rise even further and give evidence of a true market recovery before selling. This in turn caused a significant shortage of homes for sale. As the year went on, sellers were more willing to list their homes so that now, current inventory levels are about on par with those of a year ago.
Approximately 2.5 million homeowners nationwide regained positive equity status by the end of the second quarter of this year. This still left over 7 million homes underwater at the time, but prices continued to rise, and are expected to keep increasing, bringing more homeowners back into positive numbers. For 36 consecutive months, foreclosure sales decreased, down almost 33% since the end of 2012. So, don’t expect foreclosure activity to play much of a role in next year’s market.
Mortgage rates increased in 2013, and are expected to continue doing so next year. Interest rates may also increase if the Federal Reserve tapers its bond-buying as expected as the economy continues to improve.
I’m always ready to share the most up-to-date information about the Northern Virginia market with you. At JC Advantage, we know it’s important to have the most current information in order to meet all of your real estate goals. Give me a call at 703-442-0007, Ext 1 or send me an email at conor@jcadvantage.com. If you prefer, stop by the office for a visit at 8245 Boone Blvd., Suite 410 here in Vienna.
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