We have just seen an unprecedented rise in real estate values and home prices across the country over the last few years. So that brings up a few great questions. Is our local real estate market overvalued? If not, which markets in the country are overvalued?
The good news about the Washington DC regional real estate market is that we have the federal government, federal employees, and contractors to the federal government as insulation to our market.
Recently Amazon, Boeing, and Raytheon have announced that they will make Arlington, VA the new home of their corporate offices. This brings opportunity, jobs, and continued housing demand to our area. It also gets the interest of other corporations to come to the area, adding more and more jobs for the future. Therefore, our real estate market has been strong and, in my opinion, will remain strong in the future. When we do see market dips, they usually aren’t as drastic and tend to bounce back quicker than other areas.
Locally, we have benefitted from a strong real estate market for a long time. We were used to multiple contracts and bidding wars long before the last two years. However, there are a lot of smaller markets and regions in the country that have never experienced this…. until recently. In large part, this was brought on by a lack of inventory and low-interest rates, not job opportunities and growth. The downside is that these markets don’t have the “insulation” that we have in our area and when the market cools down, they could be in for a very cold awakening.
What markets are overvalued? According to this article by The Motley Fool, there are three overvalued markets that you should stay away from.
In the latest episode of The Shawn and Matt Show, we discuss these three “overvalued” markets, what Gen Z and Millennials are looking for in a house, and an amazing, fly-in community where houses have their own plane hangars. Check it out!
