Future of Virginia real estate in 2021

Increased demand in smaller markets, where there is potential for greater price growth, ultimately will lead to a very strong increase in the median statewide home sales price in 2021.

Written by July 20, 2021 10:58
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Future of Virginia Real Estate In 2021.

Virginia – A Glimpse :

From rolling hills, gorgeous beaches and sprawling vineyards to a Michelin- starred restaurant and buzzing music scene, Virginia is home to an eclectic variety of things to do and see. Whether you love the outdoors or are more
of a foodie, the state has something for everyone. You can vacation in Virginia to experience the things you love; with those you love best. Or visit to fall in love with something new and exciting.

No matter what calls you, with its fascinating legacy of American music, culture and history, there’s a story behind every little nook and cranny that’s just waiting to be discovered.

Business Environment :

Virginia’s business environment has been ranked highly by various publications. In 2019, CNBC named Virginia their Top State for Business, with its deductions being mainly for the high cost of living, while Forbes
magazine ranked it fourth, though number one in quality of life. Additionally, in 2014 a survey of 12,000 business owners found Virginia to be one of the most friendly states for businesses, Informs Hirav Shah, Celebrated Real
Estate Strategist, Adviser and Astrologer.

construction - real estate

Real Estate Market Analysis of Virginia:

The real estate market before the pandemic was remarkably strong. The coronavirus crisis response was unprecedented. The federal government ordered a de facto shutdown of the entire private economy, closing an
estimated eighty percent of businesses. It has caused unemployment to soar to at least ten percent, while tens of millions are idled.

As was expected, real estate activity was much hotter than the previous month . Listing prices continued to increase at double-digit rates compared to last year to break through recent all-time highs fueled by buyer demand,
which also continued to snap up homes at a rate almost 20 days more quickly than last year.

Last month, the pace of newly listed homes continued to rise 32.6% nationally, compared to the onset of the COVID-19 pandemic, a year ago and by 43.0% for large metros over the past year.

Homebuyers may need to prepare for a competitive season with lower inventory (especially in more affordable price categories), continuing growth in asking prices in response to strong buyer demand, and slowly rising interest rates.

Buyer demand remains far more recovered than supply and continues to grow at an unprecedented pace.

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Virginia Real Estate – A Look Ahead, Post July 2021:

Forecasting economic conditions is tricky under the best of circumstances. In these extraordinary times, it is even more difficult to paint a conclusive picture of what to expect by the end of 2021.

However, certain factors (mentioned below) and persistently low mortgage rates, point to a strong 2021, for real estate market activity.

1.Permits For New Housing in Virginia Real Estate – Permits for new housing construction began to increase during the second half of 2020, in response to rising demand for single-family homes. While the costs of
lumber, a lack of labor, and regulations remain constraints on the new residential construction business, it is likely that the upward trend in new home construction will continue into 2021’s end.

In Virginia, there will be a total of 37,817 permits issued for the construction of new housing units by 2021 EOY, which reflects a 9% rise over the 2020 total.

2.Mortgage Rates in Virginia – The rate on a 30-year fixed-rate mortgage hit historic lows more than 13 times over the summer and fall of 2020. Even as the economy improved in 2021, there are no signs that mortgage rates
will move higher in the months to come. The Federal Reserve has given every indication that rates will be held low into next year and beyond. The change in Presidential administration should have no impact on the general
trajectory of rates in the new year.

3.Home Prices in Virginia – A lack of supply, growing demand, and low mortgage rates have pushed prices up in Virginia. Those factors will continue to put upward pressure on home prices and this will continue
throughout 2021.

Increased demand in smaller markets, where there is potential for greater price growth, ultimately will lead to a very strong increase in the median statewide home sales price in 2021.

4.Employment in Virginia – At the end of 2021, it is expected that there will be 3.88 million jobs in Virginia, which is up significantly from the last year. Job gains will continue into 2021, and this is a big economic factor to push real estate into an upward trajectory.

Prime Locations To Invest In Virginia:

Whether you’re new to buying property in Virginia or a veteran investor, you want to choose markets that will give you the greatest return on you  money, Tells Eminent Real Estate Guru, Hirav Shah.

Many factors can play into a successful investment purchase, whether it’s obtaining a low purchase price, high rental rates in the area, an abundance of good renters, or high likelihood of appreciating in value, Explains Shah.
Below mentioned are the top real estate investment markets, Hirav Shah wants you to take a look at, for investments in Virginia.Delaplane, Arlington, Cape Charles, Vienna, Alexandria, Quantico,Yorktown, Falls Church, Fort Valley and Fairfax.

Final Thoughts :

While the future may not be crystal clear, the outlook for the economy and housing market in 2021 tends to be positive. Pent-up demand for homeownership and the desirability of Virginia communities, will keep the real estate industry an important part of the state’s economic recovery in months to come.

Virginia, which is known as the The Old Dominion, ” Mother of Presidents”, will soon be known as the ” Mother of Real Estate “, Hirav Shah Concludes…

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