In keeping with past practices, I will keep this short.
There is an acute shortage of available housing units in the Reston Town Center, and in many other sections of Northern Virginia. Real estate is strong again.
Interest rates are low; rents are rising; the local economy is robust. All of these factor into previous blogs I have written and predictions I made to many of you months ago: Prices are about to rise, and rise dramatically. This is occurring. Owners who thought they may have been “under water” are no longer. Supply is NOT hitting the market to match this price increase and increased demand.
The simple equation remains intact: Low interest rates + strong economy + reduced supply + strong demand = dramatically higher prices. It had to happen. It will likely continue. To those looking to list their home for sale, real estate prices are surging. Do not let anyone tell you that your home “won’t appraise”‘ implying that you cannot sell it at the real, higher market value. This is nonsense.
Even on a nationwide scale, new housing construction is up, existing home sales are up, home builder stocks surge higher even as the overall stock market backs up.
The turnaround is here, it is real, and it is likely to continue.
NVAR Multimillion Dollar Top Producer, 2011