June 28, 2010

What is Going on in Northern Virginia?

Posted to Caryl Dawson, Market Statistics

Moving to this area or already live here but don’t know what to make of all “The Real Estate News?” Our media does the best to bring information to the public but the information does not always translate to specific areas of the country and we can’t really blanket all markets as the same. Ask some of your friends and neighbors in different parts of the country and you will get a variety of opinions on their real estate market. I recently received some information from our headquarters that I wish to share with you. As of Summer, 2010 this is what is happening.

1. Of the 15 largest US job markets, only ours (DC Metro) added jobs (5800) over the last year

2. Of the 15 largest US job markets, ours has the lowest unemployment rate (5.9%). Nationally, the unemployment rate exceeds 9.5%

3. In Northern Virginia, we’ve had 9 consecutive months of increased home prices

4. In our region, the average sales price for Long and Foster sold homes increased in excess of $60,000 over the last year

5. According to the Home Affordability Index, NOW is an extremely attractive time to purchase a home

There are a number of consumers who are waiting to purchase a home until we “hit bottom”. It looks like we actually hit bottom about 9 months ago. Regardless, waiting to purchase (for those that can purchase now) is undoubtedly a losing strategy. Why? Even if home prices were to decrease, interest rates are expected to rise steadily between now and 2015. Most forecasts I’ve seen expect 7% rates in the next 5 years. As such, any money saved by waiting to purchase will be spent through higher monthly payments. Further, the increased interest rates will result in the purchaser not being able to afford as much home.

Posted by: Caryl Dawson