Realtor Q&A: How high can local home prices go?

Home values keep on rising in Northern Virginia, but nothing lasts forever.

Part of the issue with low supply is that there are homeowners who would like to move, but they are concerned about finding their next house in this hot market.

Barbara Lewis, Washington Fine Properties: “All indications are that the robust market will continue, as we still have a shortage of homes and an abundance of local buyers.

Jack Shafran, Yeonas and Shafran Real Estate: “I don’t think we have seen the peak, and I don’t see the demand being satisfied for a while.

And rates are still low enough to attract condo buyers to that section of the market.” Dawn Wilson, TTR Sotheby’s International: “I think the upper limit is still coming.

Prices will peak when rates head back up, or heavy inventory hits the market from those who have to sell in 2021, had to sell in 2020 but couldn’t, and want to sell because of higher values.

Battling to secure a property can result in emotional upheaval, and properties quickly going under contract and then reverting back to active status signal buyer’s remorse.

Rob Ferguson, Re/Max Allegiance: “My experience has been that we are seeing a lot of closings that have happened at the end of March that showed the strength of the market and prices that keep pushing higher.

There is an acute inventory shortage, but it seems like the rest of this year will continue this way, unless there is some kind of external event that changes things.

Karen Briscoe, Huckaby, Briscoe, Conroy Realty Group, Keller Williams: “I think we could still be at the beginning of a cycle where the peak doesn’t hit for several more years.

Although prices have increased by 10 to 12 percent over the past 18 months, this increase is less dramatic when looking at home prices over the past decade.

The upper limit will continue to be driven by consumer demand; and the consumer is still demanding and willing to pay for it.

Mark Middendorf, Long & Foster: “The inventory for single-family homes is so, so low, with so many buyers out there and so many contracts on each home.

If you are expecting to not do anything to your house, that will be reflected by a lower sales price and fewer interested buyers.

Joan Stansfield, Keller Williams: “We understand that the upper limit has not yet been reached and that prices are forecast to increase even higher this year – some believe as high as six to 10 percent.

Carol Ellickson, TTR Sotheby’s International: “In my world, I do not see signs of the market letting up.

Buyer demand far outstrips our housing supply, meaning that at current buyer demand all homes available on the market will be sold in two months.

To my surprise, we have had a real estate year like that of 2005, when inventory was at an all-time low and buyer demand outpaced the inventory.

For the real estate community, there was a ton of expected anxiety about how the pandemic would impact the market.

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