North Virginia Housing Market Saw the Best Year in 2016 in Over a Decade
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Market showing promise despite underlying fundamental problems
Are the good times here to stay? Experts want to tread with caution when answering this question. However, data shows that the North Virginia real estate market saw the best year in terms of overall sales volume and total sales since 2005. Despite the fact that the average property prices saw a slight slip of 0.1% from $556,995 to $556,368 and the December numbers remained muted as it witnessed a 4% fall in sales compared to December, 2015. However, boost in average property prices across all formats by about 3.5% Y-O-Y helped to give a boost to the sales volume.
The inventory issues would persist with the total number of homes on offer remaining steady but slight competition also means more affordable homes for people in the state, especially those in Arlington and Fairfax counties in addition to reports from cities like Falls Church, Alexandria and Fairfax.
According to the Insidenova report, 21097 properties were sold in 2016 compared to 20335 in 2015, a growth of 3.8% on a year-on-year basis. This registered the highest number of property closures since the historical highs of 32735 witnessed in 2004. Sales totals peaked consistently between 1998 and 2005.
Growth in sales volume
Sales volume in 2016 stood at $11.7 billion from $11.4 billion in the year-ago period. This was the third highest behind the figures of $15.7 billion in 2005 and $14.4 billion in 2004.
2016 also witnessed the fifth consecutive year when average sales price of all properties during the year remained steady at over the $500000 psychological mark, a feat also achieved in the early and mid-part of 2000s before the value came down to $430000 before rebounding.
2016 also witnessed a rise in the number of new construction properties although it still isn’t very encouraging. Experts suggest that although mortgage rate hikes may not affect the real estate market, inventory issues and lack of enough homes would keep the numbers soft in the foreseeable future in Virginia.
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