Homes are where the jobs go at night.
Think about that for a second – really – and you’ll totally grasp why the housing market in Northern Virginia (Arlington, Alexandria, Fairfax & Falls Church), is one of the strongest, most long-lasting sellers’ markets in the USA.
Even in the Covid-19 pandemic, prices increased in the DC area, sellers were overwhelmed with multiple offers and prices increased. Blessed with government, military, and government-supporting industries where most workers could stay at home and still get projects done, the whole region barely blipped downward before the buyers donned their masks, gloves and sanitizers, and headed out to buy a house.
Couple that with the lowest mortgage interest rates on record (as low as 2.5% depending on the program), and buyers have been chasing their monthly payment for fear of their buying power dropping in case the rates start edging upward any time soon.
The chart below, shows the interest rate phenomenon — in 2000, interest rates were at about 8%. Today they are at 3% and the principal/interest payment for a $400,000 mortgage has dropped about $1,300 to $1,648! In 2000, the same loan amount was more than $2900. That’s one of the driving forces on this market and the price increases.
The question comes then – “Should I sell?” (well, you ARE talking to a Realtor!) LOL!
Seriously – if you have a second home readily available or are moving out of the DC area, then selling could make sense right away. If you are looking to move upward and remain in the Northern Virginia and/or DC area, then you we have negotiation strategies that will enable you to sell your current home, and not be homeless after the transaction. (Meaning, no house to move into!)
For Buyers – you will most likely never see these rates at this level again. So if you’re looking at long-term home ownership, don’t hesitate.