Springtime is in the air in Northern Virginia and the real estate market is off to a strong start. Transactions in the first quarter of 2021 in McLean and Great Falls are up 13.6% over 2020 transaction levels. The market, which experienced a slowdown due to the stay-at-home orders from mid-March to mid-June 2020, is showing strong signs of recovery as we emerge from the global pandemic. Sellers are more confident that their home will sell at strong prices, in many cases at peak levels. Buyers are taking advantage of historically low interest rates. Looking back a decade ago in 2011 the real estate market in McLean and Great Falls has rebounded a whopping 75.9%.
Drilling down, one of the segments that experienced strong improvement with over double the number of sales is the $1 to $1.25 m price point inside the Beltway McLean 22101. Low inventory for below $1 m single family homes is due to strong competition between entry level home buyers and builders pursing in-fill lots. Home buyers in many cases are electing to “buy up” due to greater affordability with low interest rates. Compared to one decade ago in 2011, there is nearly four times the number of sales.
The $2 to $3 m home also experienced a “hot” market in first quarter 2021 with 40 sales in McLean and Great Falls compared to 13 in 2020 and only 5 a decade ago in 2011. These homes are most typically estate type properties which allow for natural physical distancing and outdoor living amenities, features highly sought after as the nation enters the post pandemic phase.
There is an abundance of buyers ready willing and able to purchase a home in Northern Virginia in 2021 and they are finding that there is considerably less supply than in previous years. Since the three month-stay-at-home orders in Spring 2020, inventory levels remain at all-time lows. As homeowners recognize appreciation not experienced in over 15 years and want to take advantage of an UBER sellers’ market, predictions are that more homes will come available.
Today, people are seeking out the security of home as a safe haven. Strong indicators are that even as more people are vaccinated, home will continue to represent the central place where people live, work, play, educate their children and enjoy physical activity and entertainment.
The traditional spring season is opening with a strong start in 2021 and market indicators show that real estate sales in McLean and Great Falls will experience another banner year. As homeowners find themselves in situations where they have a need to make a move, this could be the year to take advantage of considerable pent-up buyer demand!
Karen Briscoe, Lizzy Conroy, and Jenny McClintock with HBC Group at Keller Williams are active and experienced Realtors® in the Northern Virginia marketplace. They work with sellers, buyers, investors, and builders in all price ranges and are available to assist with your real estate needs! www.HBCGroupKW.com, 703-734-0192, Homes@HBCGroupKW.com.