We’re heading towards the end of 2023, and if buying a property is on the horizon for you, take note! The housing market’s on its seasonal slide into Fall, which is a fantastic time to consider buying. Why? Well, you’ve got a bit more breathing room to mull things over—think evaluations, home inspections, and even some perks on closing costs. Remember the chaotic Spring rush? Contingencies were nowhere to be seen!
Let’s let the numbers speak and take a closer look at the Northern Virginia market updates. Closed homes are down by about 12% compared to October 2022, and new listings took a 20% dip in October compared to the year before, 2022. Yet, the median sales price has increased by 3% from this time last year. Low inventory and buyer demand is here to stay for the foreseeable future!
Let’s address interest rates… Did you know rates have been decreasing for the last 3 weeks! We are no longer at a 20 year high and rates are closer to 7%, phew! Regardless of the rates dropping it has to be the right time situationally and financially, we respect that.
One option to reduce the high cost is the 3-2-1 mortgage buy-down! It’s like a ‘sale’ on your mortgage, reducing your loan interest for the first three years. For example, if your quoted interest rate is, 7%, the first year the rate would drop to 4%, followed with the second year at 5%, and 6% in the third year. In the fourth year and beyond the rate would adjust back to the original quoted amount of 7%. That is a great option to make your monthly payments more manageable. You can refinance at any time if the rates were to significantly change. Keep in mind this mortgage option doesn’t work for investment properties.
It’s important to weigh your options and have conversations. Please count on us as your advisor and call or text anytime you need a pulse check on the market. We have amazing partners that want to help you too, just say the word and we will send the resources your way!