Northern Virginia, and the rest of the DC area was on par with much of the nation in terms of its real estate market in 2020. However, this year is shaping up to be one that is full of promise that is being fueled by three primary issues:
1. Rental vacancies are falling
While some of the country’s large cities experienced an exodus of renters since the option of remote work became available, the same has not been true for the Northern Virginia and DC area. Instead, the region has seen a reduction of available rental properties. On a year-over-year basis, rental vacancies have dropped 0.4 percent in the nation’s capital and the surrounding areas.
2. Shortage of inventory
Like most areas of the country, the DC area has seen a lack of housing inventory. Permits for multi-family housing significantly exceeded the experts’ projection, and now more options are currently in various stages of construction. This situation can mean frustration for people who want to purchase a home, but it can be a boon for those interested in selling.
3. Healthy financial indicators
The Northern Virginia and DC area have delinquency and foreclosure rates that are below the country’s average. Measures aimed at forbearance and other protective actions likely contributed to this.
Another indicator of nation’s capital’s financial health is its unemployment rate. Currently, it is around six percent. This is far below the national average of more than 13 percent.
The Washington DC and Northern Virginia area is poised for a strong continued 2021 and beyond. The above trends point to a healthy future for both home buyers and sellers alike.