Understanding Virginia’s current housing market is crucial when deciding whether to buy or build a home in Northern Virginia. Depending on the housing market, you can get better prices building a home rather than purchasing one, or vice versa. Hepler Homes has broken down the latest statistics and trends to quantify whether or not the housing market dictates buying or building a home!
Current Market Trends
We are examining the two main factors driving the housing market: pricing and competitiveness. Based on these factors, you can confidently decide whether to buy a home, build one, or wait for a new housing market.
Housing Prices
Overall, Virginia’s housing market, based on the average home value of all homes in Virginia, has increased by 5% in the past year, with a year-over-year rise of 6.5% since June 2019. Winchester, Virginia, is the fastest growing in terms of increased housing prices, rising at a whopping 26.8% rate. The same can be true for most of Northern Virginia in general, as most of the larger cities and towns in Northern Virginia have housing prices rising between 10% to 15% on average. This means homes in Virginia, and especially Northern Virginia, are becoming increasingly expensive each year, with no forecasts or signs of the prices dropping anytime soon.
Market Competitiveness
Rising house prices are an excellent sign for homeowners looking to boost their home value or sell at a profit. However, it is not so great for families looking to buy a home as they will be met with a market slowly growing outside of their budget. In fact, in the past 5 years, 44% of people bought homes above the listing price, which is significantly higher than the 27% who purchased homes in Virginia below the listing price as of June 2024. Along with the listing prices, the number of homes listed on the market is dropping by 3% year-over-year, adding to the market’s competitiveness. Virginia’s current housing market is highly competitive and prone to higher bids than the original listing.
What Does This All Mean?
So, where does this put Virginia’s current housing market? To summarize the statistics, Virginia’s housing market is currently a seller’s market. This means it is great for homeowners looking to sell or increase their home’s value. However, this also causes an incredibly competitive housing market for home buyers, especially in Northern Virginia. Now, that doesn’t mean you shouldn’t buy a home, since every family has a different budget. While Virginia’s housing pricing is increasing, that doesn’t necessarily mean it has reached a point where no one can no longer afford it. That’s also not to say there aren’t other options as well.
In a seller’s market, home buyers can find solace in the fact there are other options, such as renting or building. We recommend that you look into buying land and building your home in a seller’s market, primarily if you reside in Northern Virginia, where the housing market is incredibly pricey and competitive. Building a home can allow you and your family to live in their ideal living space in the best possible location without the hassle and expense of trying to outbid other home buyers.
Build For the Future with Hepler Homes
At Hepler Homes, we are dedicated to building a better future for you and your family. Our commitment to quality craftsmanship and innovative design ensures that your home is not just a place to live but thrive. When you choose Hepler Homes, you choose a foundation for the future, where comfort, style, and responsible building practices come together to create the perfect place to call home. Contact us today to start building your new dream home in Virginia!