Surge in Virginia Home Value Gives Homeowners an Edge

When it comes to livability, Virginia has a lot going for it: historic charm, plenty of outdoor and cultural activities, and the perfect mix of city and country areas. With 176 colleges and universities, it’s also a great place to learn, and its proximity to the metropolis of Washington, D.C. means that there are ample opportunities for career growth. Not to mention, it has some of the lowest state and income taxes in the entire nation, and Virginia home value is on the rise.

So, it’s not hard to see why many choose to put down roots here, and continue to do so despite the economic upheaval caused by COVID-19 in 2020. Home sales in Virginia increased 25% from August of last year, with the median home price also up more than 10% to $330,000 compared to the same time in 2019. In certain regions, like Northern Virginia, the median price is up more than 14% from last year to $495,000, and Forbes recently named Richmond as one of the leading housing markets in the country. Demand is also higher and homes are selling at a more rapid rate—an average of 12 days faster than past years.

What’s Happening with Virginia Home Value?

According to Virginia Realtors, this relative stability is due to a few different reasons, like the fact that several of the most prominent industries in the state, including government and professional and technical services, weren’t as severely impacted as others by the pandemic.

Another area of the market that’s thriving, perhaps unexpectedly, is the purchase of second homes in Virginia, as more and more buyers are looking for more space and privacy in the face of the pandemic—as well as a lifestyle shift toward remote work and spending more time at home.

“There’s less congestion, less traffic to and from various destinations and more self-contained, semi-off-the-grid properties for families to enjoy and feel safe,” explained Gloria Rose Ott, vice president and broker associate for Sotheby’s International Realty in Virginia, to The Georgetowner.

One of the main challenges currently facing the Virginia housing market is that inventory is much lower than it was pre-pandemic. As of the end of September 2020, there were more than 40% fewer available houses than in September 2019.

“The houses are selling faster than I’ve ever seen, Virginia Realtor Kerri Lane Mariano told The Northern Virginia Daily. “We don’t have enough homes for the buyers out there.”

Of course, this is creating a spike in Virginia home value. Northern Virginia home sales in Fairfax and Arlington counties reportedly just reached a 16-year high with nearly $1.5 billion in sales.

Read “What Trends Are Causing House Prices to Appreciate?”

While those looking for homes might feel pretty confident about buying right now in the event that they’re able to put an offer on their perfect property, it’s quite a different story for some Virginia homeowners, who are uncertain about what the near future might hold. According to recent Zillow data, 31% of those who were considering selling their home in the next three years are now holding off due to an unstable or insecure financial situation. Much of this hesitation stems from job losses due to COVID-19: 27% of those surveyed by Hometap received lower hours or less pay as a result of the pandemic, and 17% reported a spouse’s unemployment. 

Fortunately, there’s no reason to sell your home to access your home equity now, especially when so much is up in the air. If you’re a Virginia homeowner, you have a unique opportunity to reap the benefits of the thriving climate and make the most of your property value—especially when you consider that homes in the state saw an average $14,000 equity increase in just one year.

Read more: How to predict the appraisal value of your home 

Hometap can help you tap into a portion of it and get the cash you need in as little as three weeks.¹ You can use it however you wish, no questions asked. Pay off debt, build that dream kitchen, or stress less about your child’s tuition payment. It’s up to you.