Hopping into the Spring Market!
The housing market in Northern Virginia continues to be on fire…in certain price points. Virtually anything under $450,000 that is in good shape, priced right and is not a condo is selling within days, above asking price with multiple contracts. Places in the $500,000-$650,000 price point that have been updated and show well are also selling quickly. We have a lull in the $650,000-$900,000 price range depending upon location. And lastly, properties priced in the $1,000,000-$1,200,000 price range are seeing great activity as well and are even receiving multiple offers in some cases.
We are seeing an interesting dynamic which is squeezing inventory a little, especially amongst move up purchasers. Some folks have really great rates on their current home that they have been paying down for a while and with rates and prices rising when folks move up, they are seeing some larger payment increases than they might be comfortable with. However, the conditions that create this gap (including similar percentage increases in prices on their current lower priced property) are likely to only grow. So stay within your budget but now is the time to make that move.
In today’s fast-paced market, buyers need to be very responsive when they see a home that is of interest to them because, in all likelihood, someone else is also interested in it. This dynamic is giving some buyers a little “buyer’s remorse”. When people feel forced to make quick decisions, they are taking advantage of the home inspection void rights or HOA document review period to get out of contracts at a later point in the transaction. If you are a buyer, be sure you are committed to the house you are buying and if you are not, be patient and write on one that you are willing to follow through on. These situations are creating a lot of stress on sellers and it is hurting the buyers who were willing to commit to the purchase and eventual owner-ship of that home. Of course, if there is a legitimate reason to back out, by all means exercise your right to void. Don’t “jump” for fear of loss, “jump” because it meets all of your criteria. I tell every client I work with: “Never operate out of fear.”
We have finally entered the rising interest rate environment we have been predicting the last few years. Despite this, as previously mentioned, houses are still selling which is good for our sellers. The rise in rates has caused some people to get off the fence about buying which is adding to the number of potential buyers in the market. Luckily, the interest rates for mortgages are still historically low so it remains a matter of perspective when people say rates are high. Experienced buyers know we are fortunate to have rates in the 4’s and will seek home ownership even in this type of environment.
As you know, everyone’s situation is different so please call me to discuss your plans in more detail so I can give you the right advice whether buying or selling.
Have a Happy and Blessed Easter!
It’s a good life.