Did you know that the average home in Virginia is valued at $329,000?
Homeowners across the state are celebrating the increase in their property values. However, many are still grappling with lingering questions about real estate in Virginia.
Is now a good time to sell one’s property? Or, alternatively, is it a good time to invest in Virginia real estate? And with the housing market changing so quickly, how will real estate trends change in the next year?
We have done some sleuthing to understand everything we can about the 2022 housing market. Read on to find out what we discovered about real estate in Virginia.
High Interest Rates
By now, it’s no secret that 2021 was a busy year for the American housing market. The pandemic ushered in an unprecedented era of low interest rates, allowing buyers to purchase homes with more manageable debt.
Lower interest rates allowed more Americans to invest in more expensive homes. This ultimately drove up the overall cost of housing nation-wide.
In 2022, however, that is about to change.
The Fed has announced that interest rates are about to go up. And, thanks to the war in the Ukraine, interest rates are going to increase even more than initially projected.
Ultimately, this will decrease the price of housing in Virginia.
What This Means for Sellers
A potential downward trend in the housing market isn’t necessarily bad news. For many property owners in Virginia, changes in the real estate market could represent an opportunity to profit.
In a few words, many sellers will have the chance to sell high and buy low.
Early 2022 housing prices will remain similar to the sky-high ones we saw in 2021. Selling earlier this year will allow homeowners to maximize their overall profits.
Later in the year, sellers can redirect that cash to another, less expensive investment. After all, if housing prices do decrease as projected, sellers may find that they can invest their cash into a much better property.
What This Means for Buyers
Not all buyers are in the market for the same type of property. And not all buyers necessarily benefit from low interest rates.
Real estate trends over the last two years have shown that long-term investors are the ones that most benefit from low interest rates.
Buyers looking for Virginia investment properties should consider investing before interest rates skyrocket.
In order to maximize their profits, these buyers should explore the possibility of investing in rental properties in Virginia. For more information, investors can reach out to Property Management with Nomadic.
On the other hand, buyers in the market for a personal residence should wait a few months to make a purchase.
Rising interest rates will slow down the intensity of the housing market. Plus, overall housing prices will drop, and the bidding wars will become a thing of the past.
This will provide relief to the millions of middle-class buyers who have suffered in the current market.
Learn More About Real Estate in Virginia
These last two years, real estate in Virginia has been on fire! If you’d like to learn more about the housing market, feel free to explore the rest of our blog.
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