5 Factors that Impact the Local Real Estate Market in Alexandria VA

Most buying or selling a home transactions take place at a local level, and although interest rate changes and new loan programs can affect the real estate market in Alexandria, there are other factors which may not have occurred to you. The following five factors can affect anyone investing in flipping properties in the Alexandria area, and remind you that what happens in the housing market in California may not affect you too much in northern Virginia.

Demographics

When it comes to successfully flipping properties and finding the right houses for sale, make a point of familiarizing yourself with as many local demographics as possible. Statistics affecting the local market include school rankings, unemployment numbers, crime rate, and the number of area foreclosures. A little time spent researching online can probably get you all the information you need to more accurately figure out what direction the market is likely to go in.

Housing Inventory

Of course, supply and demand affect the local real estate market, although many investors just don’t pay enough attention to this concept. It’s highly recommended to talk to a reliable local real estate agent to get a picture of the housing inventory over the last year or so, and keep in mind that a local seller is in a much stronger position if the number of homes on the market is low.

Foreclosures and Short Sales

It can be tough for property values to rebound from even one foreclosure in the local market, and multiple foreclosed properties or short sales can adversely affect the market, forcing overall home values down. And although the overall number of foreclosures has dropped in recent years, it’s still something anyone buying or selling a home should be aware of. Numbers of foreclosures going six months back can easily be obtained from the town hall.

Number of Days On Market

The average number of days that local homes have been on the market before being sold can be a much better indication of the local market than sales volume. Home buyers may be looking in another area if you find that there has been a steady increase in the number of days on the market; conversely, the local housing market may be picking up if houses for sale are on the market for fewer days than during the last few months.

Price

Look at as much information as you can when taking into account prices when looking for homes for sale with a view to flipping properties. To get the most reliable picture you can, look at the mean or median house price in your area, rather than the average price; a couple of very expensive houses for sale can adjust the average price, making it somewhat inaccurate. This inaccurate picture doesn’t help investors who are buying and selling a home to make a profit. As with any other figures, you can generalize to some extent – buyers may be losing interest and looking somewhere else if prices are falling, although increasing prices are typically a sign of a desirable housing market.