There is much to look forward to where the real estate market in Northern Virginia is concerned – but it’s difficult to do so without reservation. After surviving the Great Recession of 2008, we are left a bit hesitant to jump into any decision to purchase or sell real estate without some degree of trepidation.
Here are some of the primary reasons we should see growth and increased sales for 2015.
More Inventory – Inventory has increased quite dramatically in most markets in the DC Metro area from December 2013 to December 2014 (see active listings in the drop down menu). Sellers are now able to see the light at the end of the “underwater” tunnel and can now afford to sell.
Steadily Rising Home Prices – The gas prices are at lows not seen since the first quarter of 2009. This should help consumers realize more disposable income. This, along with a steady employment rate, should help move inventory along swiftly. However, increased inventory will likely keep prices competitive and attainable for buyers.
Interest Rates Remain Low – The Fed is not likely to increase rates until June 2015. This gives buyers a bit of breathing room to know they can search throughout the 1st and 2nd quarters of 2015 with some degree of peace of mind that the rate will remain relatively low.
First Time Homebuyers – Fannie/Freddie has changed their down payment requirements from 3.5% to 3% . This along with decreased costs for mortgage insurance (Mortgage Insurance Premiums and Monthly Mortgage Premiums) is making it much more affordable for first time homebuyers reluctant to enter the housing market.
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