Seasonality is a big factor in home prices in Fairfax VA. Millennials are fueling home price growth in first-time buyer neighborhoods. Recent changes in law and the housing market are making the market newer. Inflation is expected to decrease from 11.4% last year to four percent by 2022. But is it possible to predict home price inflation? The following article will discuss a few trends in home prices in Fairfax VA.
Seasonality is a big factor influencing home prices in Fairfax VA
One big factor that impacts home prices is seasonality. In some markets, the school year and holiday seasons influence the market. While the latter months are typically slower, they can still be profitable for sellers. A spike in inventory means more competition for a property. High competition can increase the price of a home. These trends can vary by area, so it is important to check the current market conditions to determine when to sell.
There have been increases in home values in Northern VA during the last few years. This was mainly due to a lack of supply. During the covid, there were virtually no foreclosures. Rising property values are making it easier for people to sell their homes. This is good for the market, but it can also slow the demand for homes. There is currently a low inventory of homes for sale in Northern VA.
Millennials are fueling home price growth in first time buyer neighborhoods
Millennials are driving up home prices in families-friendly areas. While millennials' early home purchases benefited from the housing crash, their current actions are having a very different impact. During the next two years, a record number of millennials will reach key milestones in their home buying career, which could stoke price gains even further.
Millennials have grown rapidly in the past nine years, and their numbers are poised to surpass Baby Boomers' by 2023. While Baby Boomers have been the dominant generation for the past four decades, Gen Xers are largely in their early twenties and early thirties, who are still deciding whether or not to buy a home. While millennials are likely to push home prices up higher, they are also more difficult to save for a down payment.
Housing is newer because of recent changes in law
Recently, a significant housing law went into effect in Virginia, SB1373. It will affect the cost of homes and the availability of new housing in the state. The legislation is the 2019 version of the 2016 housing reform law. This law will remove one of the largest obstacles to increasing the housing supply in the local area. This bill was introduced by Arlington-based Virginia State Senator Barbara Favola, and it passed the House and Senate with a combined score of 92-7. The new law will be effective July 1, 2019.
The median income in Fairfax County, VA, is $124,831. Even though Fairfax is one of the wealthiest counties in the country, thousands of residents live below the median income. Many of these residents earn less than $75,000 a year, and most pay their rent with their paychecks. Losing a job or a pay cut can have devastating consequences. Thankfully, recent changes in Fairfax VA housing law will help address this issue.
Home price inflation forecast to slow from 11.4% last year to 4% in 2022
While housing markets around the country are seeing a slowdown, Northern Virginia continues to see a strong market. Last year, sales in Fairfax County reached an all-time high. In November, sales totaled 12134, up 3.7 percent from the same month last year. The average home price rose nearly 20%, with many buyers paying substantially above the asking price. The slowdown will likely continue into next year.
The Northern Virginia real estate market is expected to continue to see growth through 2022, but the rate will be slightly less frenetic than in the previous year. Despite rising interest rates, the region's economy will remain strong, as new federal spending will help fuel confidence in major purchases. Meanwhile, business costs will rise, driving prices higher. The forecasted home price inflation for Northern Virginia and the nation in 2022 is consistent with the current trend.
Health care and prescription medicine costs are expected to increase faster than other items
Since the COVID-19 pandemic, prescription medicine and health care costs have risen dramatically, outpacing the rate of inflation. Although the increase in the price of prescription medications is not as high as that of food and gas, it is still much higher than the general rate of inflation. Since 2014, prescription drug prices have increased at a much faster rate than inflation. The increase has been much greater than the rate of inflation, affecting a significant number of people and forcing them to choose between food, shelter and health care.
Unfortunately, Americans are paying a much higher price than the rest of the world for prescription medicine and health care. The reason is simple: because of a lack of transparency in the health care system, prices are increasing more rapidly. The fact that many medical services aren't disclosed until after a patient has received their bill makes it impossible to determine how much the treatment will cost until after the procedure or medication is completed. As a result, more than half of Americans have a large medical bill unexpectedly. This can happen even to people with insurance.