October Northern Virginia Market Update
As we enter the last quarter of the year and with Halloween quickly approaching, here’s my question: is the real estate market going to experience a trick or a treat? We are all hoping for a treat but as mortgage interest rates rise along with inflation, it seems like the economy might give us a trick. As a result, buyers are in for a treat if they are in the market to buy a home. There is less competition for houses today. This allows buyers to negotiate with sellers to get lower prices, closing cost credits, and most contingencies they desire as we enter a more balanced market.
In the past, I’ve discussed that buyers should consider alternative financing options like Adjustable-Rate Mortgages and 2-1 Buydowns to temporarily get a more reasonable rate. This still stands. As my friend Jared James says, marry the house and date the rate. When the economy settles in, or if we enter a full-blown recession, we should see rates come down. Buyers can then refinance to the lower rates, especially on 30-year fixed rates.
Now as a seller, it’s going to be more of a trick going forward. Be prepared to settle in when selling your house, as the days on market are increasing. Additionally, the house will have to be in top condition, staged, and most importantly, priced right. Prices have moderated, and in most cases, we are not seeing higher prices on properties.
If you plan to sell, now is not the time to get greedy on the price, but the timing is good as there is less competition in the market. There are still savvy buyers looking to purchase a home today, and the contracts will have contingencies in them. If you are a buyer, call me if you would like to know more about the financing options I discussed, and let me guide you through the home selling process we are encountering today if you are considering selling.