Annandale REAL ESTATE
IMPACT ON REAL ESTATE FROM THE INTERNET AND COVID
By: Pat Sawhney, ReMax 100
First, we have the Internet allowing us to work on our desktops, iPads and iPhones. Over the years workers have transitioned from working 1 day a week from home, to full time at home. The benefits have included less travel time, ability to spend more time with family, time to enjoy our surroundings, not having to dress up (except maybe for Zoom calls), ability to spend time with newly acquired pets, and more.
Then, there is the new factor of viewing our surroundings in a new light leading to home expansion and renovations; also, to deciding to move to a larger home or farther out for a larger home and more land. Statistically, more people are moving to western Loudoun County, for instance.
So, if Covid hadn’t reared its ugly head would people have returned to their offices? After working from home for a couple years not going back to the office is a new trend that may be here to stay. And among those who have a workplace outside of their homes, the majority (61%) said they are choosing to work from home, while the remainder said they're remote because their workplace is closed or unavailable to them. This is up from 54%.
Among people who rarely if ever worked from home before the pandemic and are choosing to do so now, 64% said working from home has improved their work-life balance. In terms of productivity, 44% say remote work has made it easier for them to get work done and meet deadlines. One common downside, however, is feeling less connected to colleagues, which 60% cited.
Renovators have been bombarded with work; costs of materials and delays in delivery have compounded this new normal. How long this trend will continue is hard to guess. Even people who are retired are renovating. The plan is to stay in place to age and not even think about moving to senior living digs.
Because investors have found real estate to be a better investment than keeping their money in the bank, there have been more cash buyers for flips, now up to 18% of the market in 2021 in the DMV. There is a greater return on investment from buying, renovating and then selling properties that need a partial or total rehab.
Covid hasn’t hurt this segment of the market nor the standard residential market. Renters are hoping to buy; and, if they can’t find the right property at the right price, they are continuing to rent. Therefore, there is tremendous pressure on the rental market, with rents rising, and competition for the limited availability.
As far as supply and demand in residential housing, currently there is only one-half month’s supply of inventory, which is very unusual. So, prices are rising, even though mortgage rates are rising and there are bidding wars. One would hope that the rise in interest rates would put a damper on the price increases.
Another effect of this robust market is, of course, an increase in residential assessments for 2022, based on the 2021 sales. Annandale is being hit with a whopping 10.24% increase in assessments with some neighborhoods up as much as 25%. In time we will see what our supervisors do with the budget and whether there will be any decrease in the real estate tax rate. My perspective on today’s market is that it will continue strong for the year 2022. Feel free to contact me to discuss how your situation and plans fit in this market.
ReMax 100 Realty
5501 Bradlick Rd.
Springfield, VA 22151
More on Annandale Real Estate
Median Home Price in Annandale
Prices are expected to continue to escalate during 2022 but not at as rapid a rate.
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