Real Estate in Annandale, VA
Annandale Real Estate
Relax, It’s The 2016 Housing Market
By: Scott Pearson, Pearson Realty
If you can shut out the din from the Presidential primary that keeps getting louder and more shrill, pour yourself a cup of coffee, and think about the local housing market for awhile, you will find a relaxing moment in your Annandale day. Everything is fine and appears to be getting better.
In 2015 sales of residential property was up more than 10% over the preceding year. The factors that contributed to this substantial increase in sales was a combination of increased inventory coming onto the market, and a noticeable uptick in consumer confidence. Add the historically low interest rates for mortgages and banks loosening up a bit on credit, and all of the elements combined to create a healthy housing market throughout the year.
This further indicates that the housing market has become rational and healthy without overheating. Although the year-to-year median price of all homes went up around 3% in our area, the price of townhouses and condos actually slipped a fraction. Meantime the Consumer Price Index remained under two percent. Hardly an inflationary environment.
And despite the hue and cry regarding sequestration, Fairfax County’s unemployment rate is under five percent with average household incomes over six figures. Given the sales tax receipt numbers, those employed persons in Fairfax County are spending more money within the County.
As we enter 2016 what can we expect? Given the obvious trends over the past three years we should anticipate more of the same. That is, increasing amount of inventory for sale at slightly higher prices while mortgage rates remain low. Nothing dramatic. Nothing newsworthy unless you find it important that the market appears nearly fully recovered from 2008 and is just kind of purring along at a rational pace.
Now, to make sure that you don’t think that all the news is butterflies and roses, the slightly negative elements that might be viewed as a drag on 2016 are as follows: Homes for sale are remaining on the market longer. But we believe that the increased time on market is an indicator of increased amount of inventory for sale, thereby creating more choices for buyers. The average of 55 days on market is not horrible and still within the acceptable range.
Also, the number of permits issued for the construction of new homes was down in 2015 compared to 2014. However, one can’t be sure whether this is an indication of builder confidence or simply fewer opportunities to construct within the County. For example, if the nursery hadn’t been redeveloped on Little River Turnpike, where could you build a new neighborhood in Annandale? There just isn’t much available space, other than a growing trend to enlarge or tear down some of the oldest small homes since the value of the land far outweighs the building. After all, Annandale’s prime and convenient location is a significant selling factor.
Median Sales Price of Annandale Homes
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(Copyright © 2011 Annandale Chamber of Commerce. All rights reserved.)