The Long Hot Summer - Patricia Joy Schenk, M.Ed.

The Long Hot Summer

Did you know that this summer has been incredibly hot? Of course, you did! But I am talking about the real estate market. You may have heard stories about buyers unable to get their offers accepted, being outbid by others, Or stories of buyers waiving home inspections, and even appraisals. Even more, stories of bidding wars where buyers are willing to pay over asking….sometimes still losing because someone else will pay more.

YES, all these stories are true.

You may ask, why would this be true?

1. mortgage rates

In January, mortgage rates were around 5%. What would $2600 buy considering principal and interest? A $484,332 house. At today’s approximate 3.75%, $2600 would buy a $561,414 house. That’s almost 80K difference!

2. extremely low unemployment

3. prices on average 2500 sq ft townhouse haven’t gone up much in 10 years (not counting this summer) BUT interest rates are much lower and wages are higher

4. inventory shortage

4. this is an off presidential election year – expect more uncertainty next year no matter what your political persuasion and uncertainty can cause hesitation on the part of buyers and sellers

Quickly check the value of your home here.
To see what 484-560K buys in Fairfax County click here.