Real estate has been one of the top stories in the national news, and rightfully so. The housing market is one of the largest sectors of our economy, accounting for 17% of GDP in 2021. There is a very strong correlation between home sales and the state of the economy. Residential construction is a large US employer. Home ownership accounts for a significant portion of household wealth. As home values increase so does confidence in the economy. When prices rise, homeowners have more equity to borrow against, and landlords can demand higher rental incomes.
National statistics and trends, however, should not be the driving factor in your decision to buy or sell a home. Real estate is LOCAL. What really matters is the market conditions in your specific area. And, lucky for us, we live in an area where market conditions continue to be strong.
The DC Metro area is unique. While some real estate markets are closely tied to factors that can fluctuate or change, such as the stock market, manufacturing, or the climate, our market is relatively immune to fluctuations. The primary employer here is the Federal Government – a stable, well-funded employer that (almost) never shuts down.
In addition to our economic stability, our region is wealthy. According to a 2022 report by the US Census Bureau, Maryland and DC have the highest median household incomes, with Virginia ranking 9th. Our area also has one of the highest educational levels in the country. These factors, combined with low housing supplies, have kept home prices high, even while other areas of the US are seeing major price reductions.
If you are interested in how real estate is affecting our economy, listen to the news. If you want to understand how real estate can affect your personal wealth, speak with a local real estate agent. At The Reishman Group we track current trends and have a solid understanding of where the market is going. Give us a call to learn what the market is doing in your zip code, neighborhood, and even street!