Northern Virginia Building Industry Association 2021 Industry Impact Report

• The nation’s total GDP in the third quar ter was over $23 trillion, which is above where we were prior to the pandemic. Economic output is fully recovered. • Current employment of just over 148 million jobs is still over 4 million jobs below pre-pandemic levels. • The total workforce is down by 3 million people (-1.8 percent) as some people have accelerated their retirement plans, while others have the flexibility to choose not to work. • Job openings number 10 million, which exceeds the 7.4 million people that are unemployed.This is creating upward pressure on wages to attract and keep employees. • The inflation rate of 5 percent is a concern. It is being driven by higher wages, supply chain constraints, government stimulus, and increased demand for goods and housing. • The savings rate is very high and net wor th is at record levels due to a strong stock market and surging home values. • The desire to own a home is very strong, but consumers are skeptical that home prices represent a good value while others have simply been priced out of the market. Locally, the D.C. Metro and Nor thern Virginia employment figures are below average.We are following the typical pattern where the region does not suffer as much during the recession, but we recover more slowly after the economy bottoms.This contributes to a housing market that, while strong, lags that of many metropolitan areas around the country. Here are the resale market headlines for Nor thern Virginia: • Year-to-date October resale volume is up 14 percent from 2020, though sales in the last two months have been lower than at the same time last year. • Active listings are very low with 4,469 units on the market (October), which is down 7 percent from last year. Listings represent less than one month of supply, which is lower than last year and extremely low historically. • Over the last three months, the median resale price in Nor thern Virginia is $514,500, which is up 6 percent from the same time last year. MARKET UPDATE By: Ben Sage, Zonda Northern Virginia It has been 21 months since COVID-19 began to disrupt and upend lives worldwide.We may be past the worst of it in the U.S.—at press time, the Omicron variant is believed to have peaked. Regardless, there remain many unknowns going forward for the economy and for housing. Here are some of the national highlights: 18 | The Nor thern Virginia Building Industry Association 2021 Industry Impact Repor t