Tuesday, February 23, 2016

Where Will Northern Virginia Home Values Go in 2016?

While mortgage rates continue to drop to record lows, there has been much speculation about where NoVA home values will go over the next year. 

The latest Home Price Expectation Survey found that values will appreciate by 3.7 percent in 2016, 3.3 percent in 2017 and 3.2 percent in the following two years and 3.1 percent in 2020. These predictions equate to an average annual appreciation of 3.3 percent over the next five years.

On a similar note, many homeowners are holding back from listing as they underestimate their home's value and the amount of equity they have acquired. However, the truth is that they have more equity than they might realize! 

According to a new study of 1,000 homeowners80 percent of homeowners underestimate the amount of value their home has gained since the housing recovery.

And while their outlook about gaining equity is growing increasingly optimistic, still nearly half of homeowners believe they will see an equity gain this year. Over half say they expect their equity to increase between 1 and 5 percent and only a quarter of those surveyed expect an increase between 6 and 10 percent. 

"Economists have largely predicted equity gains to be between 2.3 and 4.7 percent this year," reports Realtor.com. 

It is now a great time to look into your Northern Virginia equity position as "home ownership can be an asset that [you] can now leverage to realize many dreams," says the chief financial officer of loanDepot who conducted the survey. "Whether [homeowners] choose to leverage their home equity now or reserve it for future needs, millions of homeowners have choices today not available just a few years ago."

If you are thinking about selling your Northern Virginia home this year, do not hesitate to give me a call! 

I happily serve the areas of Alexandria, Annandale, Arlington, Burke, Centreville, Chantilly, Clifton, Fairfax City, Falls Church, Great Falls, Herndon, Lake Ridge, McLean, Mount Vernon, Reston, Rosslyn, Springfield, Tyson’s Corner and Vienna. 

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