Has the coronavirus become the biggest disruptor in the real estate market of Northern Virginia? Not necessarily. I watch the market very carefully, and while we are definitely seeing a drop in the number of contracts being written in Northern Virginia for homes on the market – the number of houses coming onto the market has also decreased.
So far – at this writing – there has been a drop in the market of about 9 % for buyers writing on homes. On the seller side, owners are also making their move – taking their homes off the market – at about 8 % drop from this same time as last year. What that means is that there are still sellers wanting to sell and buyers wanting to buy – just at a little bit lower level.
Interest rates and the goals of consumers are the key indicators. Many, many buyers are being tempted at these low interest rates in the market — under 4%. This makes their buying collar much stronger – they can either buy their target home for a smaller mortgage amount per month OR they can now buy more house than they wanted to because the same mortgage payment, buys more house since the money just got cheaper!
The first two weeks of March – we were still in a sellers market – NOW – several weeks into the quarantine order, the market is definitely favoring buyers. Time will tell if the speed of the market will drop from 99 mph to 75, 60 or 45 mph! Right now – it’s at about 60!
The Northern Virginia real estate market is still robust! You have to look at your personal situation to determine whether or not you need to take pause in getting into the market or is it time to dive in! Ask yourself these questions:
1 – How’s your job? Are you in a stable position and all that’s happening is you’re working from home? Is your job with the government (agency, department or military)? Or are you working in a support industry that could be affected by the current orders to not go to work?
2 – Where’s your money? Is it in the stock market or more liquid? Did the recent fluctuation in the market eat up your closing cost and downpayment money or is it safely in a money market or savings account?
3 – How’s your comfort level in touring homes as a buyer or in listing your house and letting buyers enter your home?
Be aware that experienced real estate agents have had to be careful in showing homes before. During the foreclosure years of 2008-2010, I had to enter homes with face masks and gloves — and the Forest Green color on the walls was NOT the painted color – but rather, mold throughout the house!
Got questions? Feel free to click below to start a discussion!
Until next time…