2008: What To Expect As A Homebuyer in Northern Virginia

This is one of those rare times where all the elements seem to come together at the same time. After the market slowdown starting in 2005 followed by the financial market meltdown in 2007, the clouds have finally started to break. In fact, this may be the best time we have seen in decades to buy a home in Northern Virginia.

Lending institutions are advertising interest rates on 30-year loans that are lower than they have been in 3 years. Historically, they are some of the lowest interest rates this country has ever seen. Because many buyers are still sitting on the fence hoping they can time the bottom of the market perfectly, it is still a Buyer’s Market in most neighborhoods around Northern Virginia. What this means for homebuyers ready to take advantage of the current interest rates and a prime buyer’s market:

• There are a lot of great choices available.
• Buyers can take their time looking through the housing inventory around Northern Virginia.
• When you do find a home, you often h ave some leverage to negotiate a lower price, closing costs assistance and/or something else important to you.
• Buyers are able to request important items such as home inspection contingencies and appraisal contingencies. These may seem like basic items in some parts of the country, but many of us can remember buyers waiving all of their contingencies and escalating prices just to be considered by home sellers in Northern Virginia.
• What also makes this a better time to buy than 2003, 2 004 or 2005 is that prices are lower. You can get more home for your money.
• Some homebuyers and investors have been scooping up foreclosure properties sometimes priced 20-30% below market value.

What about the market and what it will do next? NOBODY has a crystal ball that allows him or her to predict the coming months. What we do have is historical data showing Northern Virginia homes escalating in value 7 percent a year on average. We are seeing some neighborhood in Arlington, Vien na, McLean and Great Falls already appreciating in 2007. Just within the first two weeks of January I am already seeing a lot more traffic and interest in my listings around Northern Virginia. The number of hits my listings have received on Realtor.com have tripled after the new year.

Even if the home you need to sell has decreased in value somewhat, it is likely that the more expensive home you would like to move-up to has decreased even more. To find out exactly what your current home is worth, I would be happy to provide you with a free analysis.

First-time homebuyers in Northern Virginia will benefit the most from the slow down in 2006 and 2007. Prices have decreased and you don’t have anything you need to sell. There are some great first-time homebuyer programs through Bank of America that I can introduce you to and FHA is growing in popularity. FHA has increased their limits and streamlined the process of getting one of these government backed loans. Please let me know if you would like more information.

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