How has Covid19 impacted NoVa real estate?

[Montacute]

If people haven't lost their jobs, many of us have been furloughed for at least some of the week. Our assets in the stock market are worth 20% less than a month ago. I don't know anyone that feels secure and that means saving cash. This has to effect housing. Where will the buyers come from when there is so much fear, uncertainty and definite losses of assets?? I don't understand how everyone but realtors, who always say buy, aren't seeing this.

[Sdbu679]

Virginia Business just came out with an article featuring Long & Foster's president, and according to him, Northern Virginia home prices for the first two weeks of April 2020 were up 9.2% from April 2019. Apparently, Alexandria prices are up around 18%.

While the number of sellers listing their homes is down, it seems there are still plenty of buyers (who probably have enough cash to meet the stricter requirements of a bigger down payment) willing to buy. Our housing inventory prior to the pandemic was already incredibly tight. Even if demand decreased a little bit, the level of demand still seems high among the qualified and willing buyers out there.

https://www.virginiabusiness.com/art...campaign=daily

I should add that while there are certainly plenty of homeowners and buyers who are financially impacted right now, a disproportionately large share of affected workers in the retail and hospitality industries (those who have been laid off or furloughed) are renters. It'll be interesting to see how landlords and property management companies come out through this.

[VirginiaLover]

Originally Posted by Sdbu679

Virginia Business just came out with an article featuring Long & Foster's president, and according to him, Northern Virginia home prices for the first two weeks of April 2020 were up 9.2% from April 2019. Apparently, Alexandria prices are up around 18%.

While the number of sellers listing their homes is down, it seems there are still plenty of buyers (who probably have enough cash to meet the stricter requirements of a bigger down payment) willing to buy. Our housing inventory prior to the pandemic was already incredibly tight. Even if demand decreased a little bit, the level of demand still seems high among the qualified and willing buyers out there.

https://www.virginiabusiness.com/art...campaign=daily

I should add that while there are certainly plenty of homeowners and buyers who are financially impacted right now, a disproportionately large share of affected workers in the retail and hospitality industries (those who have been laid off or furloughed) are renters. It'll be interesting to see how landlords and property management companies come out through this.

I am in Herndon and hope to sell next spring/summer. Haven't seen prices in my neighborhood up by the 9% quoted above, but when houses do go on the market, they have a contract in less than 2 weeks. I'm in a $400-525k area of Herndon (but not the city of Herndon). So the market must be tight, indeed.

[graceC]

Originally Posted by VirginiaLover

I am in Herndon and hope to sell next spring/summer. Haven't seen prices in my neighborhood up by the 9% quoted above, but when houses do go on the market, they have a contract in less than 2 weeks. I'm in a $400-525k area of Herndon (but not the city of Herndon). So the market must be tight, indeed.

Yep, that's what I've been seeing also.

[Tarheelhombre]

Homes in my Licolnia/Annandale neighborhood are sailing for incredible prices this spring.

[22003yo]

Originally Posted by Sdbu679

It'll be interesting to see how landlords and property management companies come out through this.

I have quite a few properties and I'm a happy landlord, thanks to the economic strength of NoVA I was able to collect all my rent as normal while prices have been rising. Interest rates are low, the fed has been printing tons of money, equity markets are richly valued and volatile so a good fixer upper rental right now is looking very attractive. Though it's been hard finding any deals, there is just no inventory and when something does come up it gets bid up like crazy. I think later this year things will probably calm down a little bit.

[SmartMoney]

Originally Posted by Sdbu679

Virginia Business just came out with an article featuring Long & Foster's president, and according to him, Northern Virginia home prices for the first two weeks of April 2020 were up 9.2% from April 2019. Apparently, Alexandria prices are up around 18%.

While the number of sellers listing their homes is down, it seems there are still plenty of buyers (who probably have enough cash to meet the stricter requirements of a bigger down payment) willing to buy. Our housing inventory prior to the pandemic was already incredibly tight. Even if demand decreased a little bit, the level of demand still seems high among the qualified and willing buyers out there.

https://www.virginiabusiness.com/art...campaign=daily

I should add that while there are certainly plenty of homeowners and buyers who are financially impacted right now, a disproportionately large share of affected workers in the retail and hospitality industries (those who have been laid off or furloughed) are renters. It'll be interesting to see how landlords and property management companies come out through this.

As we have learned from our President, say it is so doesn't make it so. Of course a VA business magazine is not going to paint a grim picture. We have a home (ironically listed by L & F) in our community, prime location with zero activity for 4+ weeks - priced right - if pricing is to remain level. Previously a simple "coming soon" would generate multiple offers from first time buyers. So something isn't right, suggesting pricing may be ready to drop.

[NOVA_guy]

Originally Posted by SmartMoney

As we have learned from our President, say it is so doesn't make it so. Of course a VA business magazine is not going to paint a grim picture. We have a home (ironically listed by L & F) in our community, prime location with zero activity for 4+ weeks - priced right - if pricing is to remain level. Previously a simple "coming soon" would generate multiple offers from first time buyers. So something isn't right, suggesting pricing may be ready to drop.

Yeah, I keep seeing these real estate articles saying how things are still moving fast but even in my neighborhood in Arlington things have slowed. They’re still moving but not at the rate it was pre-COVID. I think anything not directly outside DC is probably moving even slower I’d presume.

[Sdbu679]

It really depends on where. My community in Loudoun County (Willowsford) currently has 20+ resale listings under contract or contingent, and several of them went under contract or contingent within 1-3 days of hitting the market. Not enough of them have closed yet for us to see if sellers are getting their full asking price. This is on top of all the new construction homes within our community that buyers have been purchasing directly from builders.

I agree that the Virginia Business article isn't something to take as absolute fact since the April numbers were all verbal and premature, but considering all the other data points and patterns showing up in the real estate industry (tight inventory, high demand, apartment dwellers riding out the pandemic in the suburbs or rural areas, etc.), it's not surprising.

[Flamingo13]

Originally Posted by Tarheelhombre

Homes in my Licolnia/Annandale neighborhood are sailing for incredible prices this spring.

Sailing is available? LOL (j/k)