Northern Virginia in particular has some of the highest household incomes in the country, and that is primarily due to it’s proximity to the nation’s capital. There is no doubt there is a direct correlation between the economy and the real estate market. And as the real estate market improves around the country including Northern Virginia, a huge question mark looms on the horizon for the Washington DC Metro Area.
Sequestration are a series of automatic cuts that trims nearly $85billion out of the US budget. For most of the country there will likely be little to no affect on their day to day lives, but there is no doubt that these cuts will have an affect on the Northern Virginia economy. Government contractors could be laid off and Federal employees could be furloughed. In true political fashion Congress and the President will likely kick the can further down the road
As you will hear in the video below the market has been improving, inventory is low, low interest rates are keeping buyers in the market…these pressures are floating the market upward (ever so slightly). But one has to wonder how much this is affecting the current market. If politicians draw this out then the market is likely to continue increasing ever so slightly. But if Sequestration results in prolonged furloughs and contractor cuts then the market could take a turn downward.
Sequestration is the anchor on the entire Washington Metro area, but for now it is on a very small set of wheels.