October took the real estate market roller coaster ride.
Rates went up, rates came down. Sales went down, sales went up. Inventory rose, inventory came back down.
In some areas, the number of multiple contracts went down, then they went back up. Inventory of short sales and foreclosures were down, then they rose but luckily by not too much. The government shut down and the government opened back up – luckily, it was not too long and did not have a tremendous impact on the housing market.
Our emotions went up, our emotions came back down, as there was a lot of concern about delays in closings associated with the shut down because of the reduced number of employees at FHA and the IRS, but we avoided a potential disaster there. Additionally, we were worried about the government defaulting on their debt which would have sent interest rates skyrocketing, and again, fortunately, this did not happen.
Even though there were so many ups and downs, the market in October this year was still better compared to a year ago. There were more home sales, higher home prices and more homes for sale for buyers to choose from, although the uncertainty skewed people’s perception. So now you know why October was such a roller coaster for real estate.
What lies ahead on the horizon as we enter the winter market? My belief is we will be in our typical winter market. Homes will come off the market for the holidays. Motivated, savvy buyers will be out buying homes. Interest rates will remain in the low 4% range. Home prices will continue to stabilize throughout the Northern Virginia area. Houses that are priced right, in the right condition and right location will see multiple offers and our market won’t be as up and down as it was in October. Basically, we will continue to have a robust housing market locally.
To learn more about your situation, please feel free to call me today. Scott MacDonald (703) 652-5777.
RE/MAX Gateway, LLC