By Jessica Warren for The Magnificent Manors Team of KW Metro Center
Created: January 24, 2020
According to the Bureau of Economic Analysis, the United States’ economy (as measured by the Gross Domestic Product, GDP) grew at a rate of +2.1% in the third quarter of 2019. The complete data and analysis can be found here. Economists believe this growth rate (between 2% to 3%) is ideal because it’s fast enough to provide enough jobs, but not so fast it will create inflation or an asset bubble. (Click here for more on that).
Northern Virginia performs better than the national average in terms of employment growth and unemployment rates. Its rate of employment growth is +1.6% over the year (U.S. average is +1.4%) with Professional/Business Services, Health Care and Leisure/Hospitality topping the industry sectors. It’s also notable that the Northern VA/Washington DC area has had consecutive year-over-year employment increases for nearly six years. More on this topic can be found here.
Unemployment rates are lower in Northern Virginia than compared to the country as a whole: 3.5% US; 2.6% VA, 2.2% NoVA. If you are interested in more details, you can visit here for the complete national and state U.S. Bureau of Labor & Statistics chart. For Northern VA, click here.
When it comes to the 2019 housing market, Northern Virginia performed very well. The average home sale price rose by +4% ($590,582 in 2018 to $614,236 in 2019) and the average days on market for homes is less than half of what it was last year (24 days in 2019 compared to 55 days in 2018). We should note that at the end of the year, active listings decreased -24% in December 2019 compared with December 2018. (National Virginia Association of Realtorsâ)
So, what does this mean for the Northern Virginia real estate market in 2020? Dr. Lisa Sturtevant, Chief Economist for Virginia Realtorsâ predicts jobs will continue to grow (+1.2%), interest rates are expected to remain steady and a continued low inventory of homes will be listed for sale. Therefore, strong buyer demand and low housing inventory will continue to push prices up in 2020. Northern VA’s home sale growth is expected to be up to +3% for 2020 with median home sale prices up +4.6% which will be the first time prices will average over $300,000. Read Dr. Sturtevant’s complete report here.
If you would like more information about buying, selling, or investing in Virginia or Washington DC, contact me at marybeth@magnificentmanors.com or 703-798-1803. I would be happy to meet with you to start the conversation. Marybeth Fraser is CEO of The Magnificent Manors Team of KW Metro Center. She is a MBA, Realtor®, Accredited Staging Professional® and Certified Luxury Home Marketing Specialist®.
The information in this article is correct at the time of publishing and every attempt is made to ensure its accuracy.