Tam's Tuesday Tip | Pendings Predict A Record Breaking Spring
Alexandria VA Real Estate - If we take a look at pending home sales right now, from December 2015 to February 2015, we see that the number of homes going under contract is growing nicely.
We're in a really good place and it looks like the momentum is continuing to build. Take a look at the percentage change in pending sales for December through February of 2014 vs 2015:
December marked the month where the tide turned in the Alexandria VA real estate market in comparison to last year. In December 2013 there were 146 pending home sales in Alexandria VA vs 169 in December 2014; a 15.8% increase. In January 2014 there were 180 pendings vs 211 this January; a 17.2% increase, and in February 2014 there were 245 home pending compared to last month's total of 265, which was an 8.2% increase.
This data on pending home sales in Alexandria VA compliment NAR's report on the recent foot traffic in homes that are currently on the market.
If you are thinking about buying a home in Alexandria VA within the next 3-6 months, then you'd better "Get on the Good Foot". Why? Here are three good reasons:
Interest Rates are Projected to Increase This Year
Freddie Mac has predicted that mortgage rates will increase this year. Even if Alexandria VA housing prices remain the same (which they don't in a hot market), the cost of money will increase. The longer you gamble with time and try to wait, the greater your chances are of having a higher monthly mortgage payment as the year progresses.
Low Down Payment Mortgage Programs Are Making A Comeback
Rising rents can make it harder to save up money for a down payment. If you think that you need 20% down to own a home, that's not the case. Freddie Mac announced earlier this year that first time buyers can buy a home with as little as 3% down with the Home Possible Advantage Program. The Virginia Housing Development Authority (VHDA) also announce a 3% down payment grant, this means eligible first-time buyers can qualify for down payment funds that's not even a loan.....there's nothing to repay!
You Will Competing With Other Buyers
As an experienced Alexandria VA buyer agent, my advice still falls on deaf ears sometimes. So, if you don't believe me, just ask the "Google gods".
When we look at how many people Googled the phrase "buying a home" we see that in January 2015, "buying a home" was trending at a much higher rate than January of 2014 and 2013.
So, get that Alexandria VA home search started today! The spring real estate market looks like it's going to be a record breaker. If you want to make the most of it, get in early and stop putting it off. One of the toughest things to explain to a buyer is how "that" house is now thousands more than the homes that sold in the same neighborhood just six months ago. Get in the game before you have to pay more!