If you’re visiting this web page, it’s probably because you’ve been talking with me for some time now and you have seen a few homes with me and you’re going to buy one of these days. Of course, you can buy anytime. But you probably want to get a deal, right? Here's why it's critical to consider buying now:
It's December! -- Prices are seasonally a little lower than they've been all year. This is because of a seasonal slow-down that happens pretty much every year around November. Most buyers put things on hold for the holidays (between Thanksgiving and New Year’s) so with lower buyer activity come lower demand. Lower demand, by simple supply and demand economics, drives prices down a bit. By mid-December, we see more homes percentage-wise that have been on the market a long time. Lower prices is a good thing for you! But in January prices will begin to rise again. So don’t wait!
It’s December! -- Yes I know I said that already. But it's a great time to get a deal! Remember I said that the market slows down a little, and demand is lower? Well consider that most of the homes on the market need to sell (that’s why their listed in the first place). If you make an offer now in December, you have a chance of getting an even better deal! Think about it… if a seller needs to sell, and virtually nobody is touring their home, nobody is hinting at an offer, you have an opportunity. That seller might think “Nobody’s biting, I hope I get an offer soon!” And with no other interest, and therefore no direct competition to you, you stand a good chance to get a deal below asking price. Be sure to have a good Buyer’s Agent (like me!) to help write that perfect offer... Not too low but low enough to negotiate a deal!
Interest Rates are Going to Rise. -- There's no doubt rates will continue to tick up a bit. The fed HAS to raise rates now because we have had, to date, 10 years of positive GDP growth. A recession will come eventually, and when that happens the Fed will need to lower rates. Well, the Fed can’t lower rates unless they’re a little higher. So that’s why you’ll continue to see them tick up gradually. And when that happens, why do you care? Because every 1/4 point the rates goes up adds about $16 per $100,000 of mortgage. So a $500,000 loan would cost you $80 more per month! Yikes!
The "Amazon Effect". -- The impact of Amazon HQ2 coming to Crystal City is going to put an additional strain on the Virginia housing market. Adding roughly 2500 families per year, plus another estimated 1600 families for the support jobs (like gardeners, maids, hair dressers, dry cleaners, etc) is only going to make demand even higher and that will make prices rise even more! So for the foreseeable future, even if there is a recession, we don’t sense that housing prices are going to drop, they’ll likely rise or at worst reman steady. That means that if you’re waiting for prices to drop before you buy, you might be waiting a very loooong time. That’s why there won't be a better time to buy than right now!
I hope you found this information useful. This is not intended to alarm you, simply make you aware of the fact that in all likelihood if you wait to buy, you’ll be fighting an uphill battle. If you'd like to discuss this personally, feel free to call me anytime at (703) 309-3527. I'm here to help YOU.