Overall, national home prices grew slower in 2019 (3.3 percent) than in 2018 (5 percent). 2020 seems like it will be no different. In fact, real estate gurus predict that home prices will rise by 2.9 percent. So, you’ll likely see home prices continue to creep up. Inventory will also be a major factor in pricing. New construction projects have been popping up throughout Alexandria. This will also help with inventory.
Consumer spending has picked back up, reflecting healthy consumer confidence. Job creation is on a steady path and annual wage growth has stayed at or above 3 percent since October 2018. Here in Alexandria, economic and home-value growth should continue into 2021. Even if a recession hits, it is not expected to affect our local or national housing market.
Once again, millennials took the lead as the largest group (37 percent) of home buyers last year. What does this mean for home sellers? Millennials are more concerned about their commuting costs and how close their new home is to great schools. They are turning away from the sprawling mansions and buying smaller homes that are convenient and of great quality. This means split level and space efficient homes are back in vogue.
This also doesn’t mean that baby boomers are getting left out of the situation. 55-plus communities are now popping up in Alexandria. These communities like Walhaven at Kingstowne are offering three-level townhomes featuring private elevators, two-car garages, and designer kitchens. Baby boomers might be downsizing, but they are also choosing a high-end, low-maintenance lifestyle.
To hear the whole in depth conversation on 2020 predictions, check out The Patt Pod: the new podcast from The Patterson Group.
The Patterson Group is one of the most experienced and trusted real estate teams in the area, serving Alexandria, VA for over thirty years. We offer professional, hardworking, detailed and friendly service and a large network of contacts and resources accrued over our many years in Alexandria real estate. Comprised of seven Alexandria locals, six of whom are licensed realtors and three of whom are accredited staging professionals, The Patterson Group is passionate and knowledgeable about Alexandria, VA and here for all of your Northern VA real estate needs. Allow us to help you find your home here and discover all that the Alexandria lifestyle has to offer.
400 South Washington Street
Alexandria, VA 22314