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D.C. home values tight despite Federal job shrinkage

Written by Posted On Tuesday, 22 October 2013 11:50
D.C. metro job growth D.C. metro job growth Anthony Carr, Weichert Realtors

The federal government job sector continues to shrink in the D.C. area, but local economic experts say that will not do much to slow economic growth in the region. The Northern Virginia Association of Realtors held its annual Economic Summit at George Mason University last week, and the news looks good for Northern Virginia and its surrounding suburban neighbors.

"Federal jobs will shed about 22,000 in the next few years, but mostly through attrition,” said David E. Versel, Senior Research Associate for the George Mason University Center for Regional Analysis (CRA).

 While such shrinkage will make headlines over the coming months, the actual effect on the local economy will not be that great because the regional economy is in transition, according to Versel. In the past, it relied heavily on  federal spending, and now it is more diverse, full of national and international corporations which have moved to the region because of its well-educated and skilled labor force.

 In 2010, federal spending and wages accounted for  39.8% of the local economy, according to CRA. By 2017 that share will drop to around 29% while local and non-local private sector businesses will increase from 36% to 44% – which can help insulate the local base from relying on just one major income generator like the federal government.

 Keeping in mind that houses are where the jobs go at night, the loss of federal jobs will not necessarily have an adverse effect on the local housing market. Just looking at the numbers reveals that if anything, we are going to be facing a tighter market moving forward.

 In fact, in the next four years, the federal government is the only sector losing jobs. All others are projected to increase. Various sectors will enjoy robust growth such as education/health (+10%); professional & business services (+20%) and construction (+37.8%).

 The bottom line is that more than 280,000 jobs will make their way into the D.C. market by 2017, according to the CRA; and those who are in the market now will benefit from the appreciation that is bound to result because of the supply and demand. 

 Want more data or input on your personal economic situation with your home? Give us a call at (703) 821-8300 at Weichert Realtors, McLean VA, serving Virginia, Maryland and D.C.

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Anthony Carr

Anthony Carr is an Associate Broker and real estate authority with RE/MAX West End in Falls Church, VA, a boutique and powerful office serving the whole VA|MD|DC market. He helps buyers, sellers, and investors navigate through the pitfalls and mosaic of the real estate transaction in the robust market of Northern Virginia, Washington DC, and Montgomery & Prince Georges counties in Maryland. 

He launched Anthony Carr Associates LLC and brings a steady, stable and stress-free approach to serving his clients. Licensed for more than 20  years, he is a sought out authority in the region, having given back to the industry, not only as a real estate agent, but also regional sales trainer, managing broker and published author in the robust market of Washington, D.C. 

He has trained and coached thousands of agents in the DC area and managed top teams to higher production and customer service. Anthony's real estate career is diverse, and he has proven his expertise as a sought-after speaker, author, blogger and problem solver. Anthony authored the book "Real Estate Investing Made Simple: A commonsense approach to building wealth"; and was a contributing writer to "The Best Real Estate Advice I Ever Received," published by the Trump Organization. 

He's published hundreds of articles both online and in print and has been interviewed by news outlets nationwide, including the Los Angeles Times, The Washington Times, Woman's Workd magazine and numerous webcasts. He was also featured several times on CNN's Open House broadcast. 

Follow his blog and videos at www.AnthonyCarr.net/blog



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