There is so much confusion in what is being reported about the real estate market it is understandable why so many people are unsure of what to do in regards to housing. Information recently reported from Standard and Poor’s is just one reporting outlet where mixed signals are being sent out to consumers. In one report, they claim that housing prices have increased for 8 consecutive months – this is through Standard and Poor’s and then through the Standard &Poor’s/Case-Shiller pricing index they say prices have dropped for the 4th consecutive month – absolutely insane. How can one agency say prices are going up and down at the same time and not believe they are sending a mixed message to consumers and in turn hurting the housing recovery?
For the record, The Washington Examiner reported that the Washington area was the strongest in the Nation as we have the right fundamentals in place. Low unemployment, and scarcity of land are factors they sight in their article – couple this with low inventory, low housing starts, great rates, the home buyer tax credit and relatively affordable prices and we have a better than average housing market.
We too have been hearing, reading and expecting rates to increase when the Fed eases out of and stops buying mortgage backed securities (which has been happening by the way) yet rates have stayed low – conflicting news, but good news none the less.
We watch the market very closely everyday here locally and it is important to understand from a professional what is happening in our market and why. We want to reiterate that our housing market in Northern Virginia is robust, resilient and is rebounding nicely today. Our absorption rate remains high, prices are increasing in some areas and we have buyers out looking to capitalize on the remaining days of the home buyer tax credit. To learn more about what is happening with your home or to learn how you or someone you know can take advantage of the tax credit, call us today!