Mortgage

June 2022 Market Update

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Lately, we’ve been having conversations with each other, our clients, and others in the industry both locally and around the country to better understand what is happening today in the real world and the Northern Virginia real estate market. Lots of questions are being asked. Do we have a housing bubble in Northern Virginia? Are prices going to crash? When are prices coming down? Should I wait for prices to drop before I buy? Why is it taking longer to sell a house? How high will rates go? Should I sell (or buy) now or wait? 

In my opinion, prices will not be escalating at the rate they were previously. Those dramatic price increases were not sustainable. There may be pockets where prices decline, but we still have high demand at most price points.

Additionally, our price increases were not as drastic as in other parts of the country. According to the FHFA Top 100 Metropolitan Markets Ranking, we rank 99 out of 100! Other parts of the country will see higher price drops, but our area should remain stable. We will not have a “housing crash” in Northern Virginia. 

Don’t wait to buy real estate – buy real estate and wait. Buy because of your lifestyle, needs, and wants – and not strictly because of prices. Buy for the long term, not the short-term gains. Yes, the market has slowed down. Buyers are not “rushing” into buying decisions like they were previously, but remember – that type of market cannot be sustained. It is still a seller’s market. It’s a good thing when a house is on the market 7-10 days.  

If you are thinking of selling soon, give me a call. Rates are going up on 30-year fixed mortgages, but you do have alternatives – most notably, adjustable-rate mortgages and buydowns. The adjustable-rate mortgages are a great option and not what they were when the real estate market crashed in the past. Buydowns give you another option, with lower than 30-year fixed rates. Let’s discuss why these are often viable options for buyers. If you are looking to sell or buy – now is a great time, so call me to learn more.

Enjoy the last few days of Spring before the summer heat kicks in!

February Market Update

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So Far This Year…

Nothing can stop the real estate market here in Northern Virginia; not the rising interest rates, not the pull back of the FHA mortgage insurance premium reduction, not lack of inventory, and especially not this cold weather we are experiencing.

Sales are strong and we appear to be headed for a robust spring housing market.  In addition to the group of buyers we are currently working with, we are getting lots of online leads from additional buyers asking about houses; both new builds andrrg-logo_small resale. Typically, this group will become home buyers in three to nine months – stay tuned for more details as we get down the road with these leads.

Today’s buyers are looking in all price ranges and in all locations throughout Northern Virginia. As you would imagine, the lower price points are in very high demand, but so are higher priced properties in areas like McLean and North Arlington.  We have some soft spots (lowering of prices and accumulation of days on the market) in the Great Falls area, but typically, if houses are priced right, in good condition and have been staged, they are selling quickly!  Thus, inventory is at a four year low with just over 3,900 existing homes currently for sale. We expect properties to come on the market in February, but with the demand we are experiencing now, they too should sell quickly.

So, what are the lessons we have learned so far in 2017?  If you are a buyer, act quickly! If you find a home meets your criteria and suits your lifestyle, make an offer, don’t wait.  Many properties are receiving numerous offers; therefore they are selling quickly.

If you are a seller, get your house “right” and get it on the market sooner rather than later – there is a strong appetite for housing today.  Buyers are out there and ready to make a move.

If you would like to discuss your situation in more detail, please feel free to call me today.  I would enjoy meeting with you to determine which is the best option for you to pursue.

Stay warm!

Scott can be reached at 703-652-5777 or scottmacdonald@remax.net.

Understanding Prepayment Penalities

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penaltyFor most of us, the idea of paying off our mortgage well in advance is elating. But before you make this big move, it’s important to understand prepayment penalties, and what they could mean for you.

Simply put, a prepayment penalty means you will have to pay the lender a percentage of the principal, or some other stated amount, if you decide to repay the loan early. While this may seem wild (being charged for making your payment early!?), it’s actually quite common.

Some mortgages have prepayment penalties written into them. However, the prepayment clause is usually in effect for only one to three years and may be waived for special circumstances. Lenders impose the penalty to recover any losses related to your early payment.

If you are in the market for a home loan, ask about prepayment penalties before signing on. If you are applying for a new loan, the penalty should be disclosed in the truth-in-lending statement. Read the fine print and weigh all your options.

If you already have a home loan, call your lender or dig through your paperwork to spot any prepayment penalty clauses you may have missed.

As a Member of the Top 5 in Real Estate Network®, I have a wealth of real estate and home ownership information that may be of help to you. Feel free to contact me any time to learn more about this important information, and be sure to forward this article on to any friends or family that may be interested as well.

Economic Forecast for 2016 and what it means to the Northern Virginia Real Estate Market

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Happy Holidays!  Sorry for the delay this month but I wanted to have our Economic Summit with Dr. Stephen Fuller to fill you in on what is coming down the pike for our economy here in Northern Virginia.happy holidays from REMAX gateway

This year sales remained strong and higher than last year indicating we are still in an improving market.  Prices are stable as we wait for higher paying jobs which happened in the last local jobs report.  Higher paying jobs, along with lower inventory will put upward prices on houses in the future.  Next year will be even better than this year but it appears as if 2017 will be the best year of the decade so we have that to look forward to in housing.  Also, new home starts as well as sales are projected to increase in this same manner which will create even more jobs for our local economy.

Additionally, we see no reason that the Continuing Resolution bill will not pass and be implemented which will lead to the first of 8 interest rate hikes by the Federal Reserve.  Both announcements are due the second and third week of December.  The mortgage interest rates published today already have this rise in rates priced into them so we are not expecting a spike in mortgage interest rates next week when it is announced.  It is projected that by 2018, the Fed rate will be about 3.25% and mortgage interest rates will be around 6%.

Our job market will continue to grow in mostly higher paying jobs but the food and leisure jobs still are the strongest in our economy.  Professional Services and Health Care are coming on strong and this is where the higher paying jobs are for us.  This trend will continue for the next few years.

All in all, a bright forecast for our real estate market just in time for the holidays!  If you would like a copy of the presentation he gave us, please let me know and I will send it to you.

Enjoy this time of year with your friends and family and please be safe!  Until next year, Happy Holidays!

Scott MacDonald

RE/MAX Gateway
4090B Lafayette Center Drive, Chantilly, VA 20151
Offices strategically located throughout Northern Virginia.

 

NFL Super Bowl Challange and a “No Deflate-Gate” in the Northern Virginia Real Estate Market!

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Watch Scott’s Market Minute!

Low interest rates, low resale housing market inventory and great loan options.  If you are considering buying or selling real estate – contact me for a free consultation 703-652-5777 or scottmacdonald@remax.net

Will You accept Scott MacDonald’s NFL Challange?