The real estate market of Fairfax VA
The real estate industry has some of the most developed and competitive markets anywhere in the world. At some point during our lives, we all have to go through a real estate transaction, whether it is buying, selling, or renting properties. We all know by now that you don’t have to be a real estate investor to know about the housing market. If you decide to relocate for any given reason, you will have to consider at least one of the three primary real estate transactions: buying, selling, or renting properties.
We all want to lead a good life in a city that provides the best quality of life and in a place that is specifically catered to meet our needs. We all have our own metrics to determine if one place is better than another and what’s best for you might not be ideal for another person. People searching for the best places to live in the US in 2021 might want to learn more about one city in particular. Many consider it one of the best suburbs in the country.
Located in northern Virginia, the city of Fairfax is an enclave surrounded by Fairfax county, which is a separate political entity, highly praised for its quality of life and real estate market. A desirable place such as Fairfax has an even more desirable housing market; therefore, we are here to tell you everything you need to know about Fairfax’s real estate market.
The current state of the real estate market in Fairfax VA
In 2009, Forbes magazine rated Fairfax as one of the best places to live and people’s attention was drawn towards the city. With an increase in population, there was an expected increase in housing demand which gradually led to the expansion of the residential real estate market and the appreciation of home value.
According to the NeighborhoodScout report, from 2000 until the end of 2020, the Fairfax real estate market had a 150% appreciation rate. The average annual growth rate was around 5% and real estate agents in Fairfax VA reported the area as being one of the tightest markets in the country.
Currently, Fairfax’s housing market is very competitive, and inventory is scarce. With a year-over-year increase of about 7%, the current median home value is around $600,000. Homeownership rates in Fairfax show a distribution of about 70% for owner-occupied households vs. only 30% renter-occupied households. The homeownership distribution clearly indicates that people in Fairfax prefer to own rather than rent, and it might also be due to the fact that the average market rent is very high.
The average rent is close to $1,900, and about 61% of homes rent for a price between $1,500 to $2,000 per month. Only 14% of households in Fairfax rent below $1,500/month and less than 25% of homes rent for a price above $2,000. Buying a home is not cheap either because half Fairfax’s homes are valued between $550,000 and $850,000, and 25% are valued between $450,000 and $550,000.
However, homebuyers who decide to purchase property in Fairfax VA, will have high equity in their homes, mainly because the housing market increases so much every year. Single-family homes predominantly occupy residential areas in Fairfax, and they constitute more than 55% of the total amount of homes in the area. Townhomes and apartment complexes follow them, and more than half of the houses were built between 1940 and 1969. The town’s initiative to preserve its historical heritage by restoring its old buildings and their architectural features is one reason why older buildings and homes predominantly populate the real estate market.
Buying a home in Fairfax VA
Homeownership in Fairfax VA is highly desirable amongst many new residents, and there isn’t a better time to buy other than now. The growing investments of big businesses and government agencies will keep on fueling an already healthy economy in the area. Buying a home in Fairfax VA goes beyond fulfilling the American dream of homeownership; it is an investment in the future.
But why is Fairfax such a great place to buy real estate? Firstly, you have an investment with high growth potential. Just looking at the statistics mentioned above should give you a fairly reasonable estimate of how the housing market will evolve in the upcoming years. Secondly, the bustling economy of the city is fueled by the business development in the area. Not to mention the fact that there are tons of job opportunities, and the excellent schooling system along with the cities’ safety only add up to the list that makes Fairfax such a great place to live.
You are located just a short drive away from the capital city of America, which offers an abundant amount of things to do, in one of the greatest cities in America. You can never get bored since the area offers a lot of entertainment, recreational opportunities, and relaxation. Nonetheless, Fairfax is one of the future tech-hubs, and if you want to plant your roots in the area, there is no better time to do so.
Real estate forecast for Fairfax VA
According to some of the best realtors in the DC metro area, the real estate market for detached homes has literally exploded in the final quarter of 2020. Northern Virginia is the ideal place to get more space, and this requirement has become one of the main priorities of home buyers, fueled by the ongoing pandemic. Low inventory and high demand is the order of the day in Northern Virginia as we naturally enter into a seller’s market that encourages competition, high prices, and excellent contract terms.
Statistics show that in Fairfax County, the average house was on the market for only 23 days in the 3rd Quarter. The average amount of days spent on the market has dropped by about 16% compared to last year, and the average sale price went up by about 11%. High prices and fast sales are what you can expect as a home buyer or home seller in the area.
On the other hand, the condo market is not doing so well. Oversaturated with inventory, slow sales, and dropping prices is the norm in this market area, but it is a great time to buy a condo as an investor. The same trend can be noticed in the rental market, which is also oversaturated and slow. It is believed that most of these trends are being pushed by Covid restrictions which limit the quality of life for condo residents.
The real estate market of Fairfax, VA will continue to remain strong, as sales will continue and inventory will remain low. Interest rates remain low throughout the year, and some homebuyers report interest rates as low as 2.5%. Condo sales will remain slow through the first two quarters of 2021, and later as the virus is contained, sales in this area are expected to pick up.
There are plenty of reasons why you should look into the housing market of Fairfax VA. Primarily, you are looking at a housing market with a significant spike in sales and prices over the past year. Anyone who ventures into the real estate market of Northern Virginia can expect to see a massive return on their investment in the area. Whether you are a professional investor or just a home buyer looking for a better place to live, Fairfax VA is the right place for both.
Fairfax is a hot spot for raising a family, building your business, and many other interests. The area’s top schooling system provides an exceptional workforce to support its business growth and industry. With so many opportunities for work, relaxation, and leisure, the city of Fairfax is without a doubt one of the best suburbs in the country with an up-and-coming real estate market.
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