Mid-Term Elections and the Northern Virginia Real Estate Market

This year's mid-term elections certainly will cause overhaul in the direction of Federal Government spending and budgeting. As the Democratics take ownership of the Houses of Congress, Federal Agencies, Contractors, Integrators and Suppliers are waiting anxiously to understand how the new legislator agendas will affect the flow of money, contracts and employee hiring or transfers.

While this timeframe will likely result in actual Government slowdown, from a decision-making perspective (as the Administration changeover occurs), certain segments will anticipate increased or decreased spending plans. Defense spending directly related to the Iraq war will likely decrease, though spending on logistics, supplies and travel will likely increase, as part of the cycle of preparations to withdraw forces. Concurrently, spending on civilian programs is likely to increase, in areas like Homeland Security, Agriculture, Housing and Urban Development, and Energy...leading to an increase in "transients" around the Nation's Capital. This is because while DoD employees, contractors and vendors tend to be co-located around DC, Civilian Agency activities and support is spread further around the region and across the Nation.

What does this all mean? Northern Virginia will remain a very vibrant area for Real Estate, the current inventory of housing should start to decrease and become more active, and both buyer and seller opportunities will be more attractive. Already, buyers are finding great offers and incentives from new home builders and existing home sellers. Commercial properties are beginning to sign more long-term deals. Sellers are seeing renewed interest in their properties, though we don't expect a full-on recovery in market liquidity until after the Holiday Season. Renters are having a great time, with many motivated property owners "renting out" the housing downturn.

If you're a government employee, service member, contractor or vendor, contact me now to discuss the great options and likely trends in this area, when buying or selling your property!