Everyone goes through a real estate transaction at least once in their lifetime, whether buying or selling a property. Naturally, you don’t have to be a real estate investor to do it, but knowing the local markets will help you make the most of your sale or purchase. It’s no secret that the real estate investment markets in Northern Virginia went through the roof, with an increase of 17% in home prices in the past year. That makes the NoVA area a perfect choice to consider when planning a future investment.
What makes the Northern Virginia real estate market thrive?
As a prime location, only a short distance from Washington DC, Northern Virginia attracts many homebuyers and investors. The area is also home to the federal government, many corporate headquarters, trade, contracting, IT, data, biotech, and other industries, providing many business opportunities. In the past couple of years, NoVA has become a significant tech hub, incubating many startup companies and constantly attracting brilliant young entrepreneurs. All these factors have made for a strong rental and housing market even during the pandemic.
The most successful real estate markets in Northern Virginia are Manassas, Fairfax Country, Arlington County, Alexandria City, and Loudon County. They have continued to lead with some of the most impressive homes in the whole Old Dominion during the last few years.
Most homes in Fairfax County are single-family homes built in the mid 20 century, followed by townhomes and condos. In the past 20 years, the Fairfax real estate market reached an appreciation rate of 150%. Even though the yearly rise in the past few years was only 5%, Fairfax County continues to be one of the hottest markets in the area. Here, the median home value goes up to $600,000. Alternatively, more affordable homes can be found in northern parts of the County, mainly Reston.
The median rent is $2,000, which means investing in rentals pays off here. The reason for high rental occupancy is the bustling economy in the area and excellent job opportunities. The County also has some of the best amenities and services in the DC metro area. This means you shouldn’t have a problem if you decide to relocate here since you can hire reliable moving experts that operate in the area to take care of your move.
Property prices in Arlington County dropped by 10%, making the housing in the area more affordable. Still, even with lower appreciation, the median home value is over $600,000. There is a high demand for single-family homes, which means the cost will only rise. However, the situation is stable in the condo market after a significant inventory increase in 2020. Either way, both single-family homes and condos sell fast! Single-family homes stay less than seven days on the market, while condos sell in ten days on average. If you’re thinking about selling or buying a home in the area, now might be a great time to do it since the interest rates are low. Keep in mind that the market might drop down a bit, but you should not expect significant reductions in prices.
If you’re looking for urban real estate investments, look no further than Alexandria City. With median home costs of $642,978, Alexandria has some of the most expensive properties in the US. The area had two big developing stages of neighborhoods. The first one occurred after WWII, from the ’40s to ’60s, while the second happened between the ’70s and ’90s. Many homes on the market are large apartment complexes and high-rise apartments, followed by row and other attached homes.
Even though 2020 was tough on the economy, the NoVA housing market hasn’t backed down. The demand for homes continues to grow, and in many cases, future homebuyers are discouraged by the limited selection of properties on the market. Like other real estate investment markets in Northern Virginia, Manassas offers amazing locations and amenities. But unlike other hot real estate cities in the area, the median home value is $396,594. Most homes here were built from the 70s’ to 90s’; thus, you can expect a retro vibe in the neighborhoods.
According to NeighborhoodScout’s data, Manassas’s appreciation rate went up 10% in the past year. Single-family detached homes are the dominant housing option, followed by row houses and other attached homes. Also, since the demand is increasing, large apartment complexes and high-rise apartments are trending. Choosing any of these options is an excellent investment, whether you plan to relocate here or use the property as a rental. Unlike other city centers in Northern Virginia, Manassas provides a small community feel with great local shops and services. Therefore, if you’re considering investing in real estate here and moving, you can have your Manassas-based relocation handled by hiring some of the best moving experts in the area.
Loudoun Heights is a close-knit community in Lovettsville, Northern Virginia. The average home price in the area is $585,862, with lovely medium to large townhomes and single-family homes. Low crime rates and some of the best public schools in the States make it a perfect place for raising a family. The number of renters is below 10%, which means investing in rental property might not pay off. However, if you’re looking for the perfect town to settle, this might be the place.
When it comes to real estate investment markets in Northern Virginia, many factors influence the success of a purchase. Mainly, you will need to pay attention to the timing, rental rates in the area, and appreciation in value. Only after exploring each of the markets individually and making a good financial plan will you be able to estimate the outcome.