5 Things to Know About Home Buying in Northern Virginia This Summer
Home buying in Northern Virginia during the summer can be an exciting and rewarding experience. The sun is shining, school is out, and the days are getting longer. More daylight and clear blue skies give buyers a better picture of the neighborhood, but you may be wondering whether buying this summer is financially beneficial.
Thinking of buying a home this summer? Not sure what to expect? Dutko|Ragen Homes & Investments is here to help!
Here are 5 Things You Need to Know about Northern Virginia’s 2018 Summer Home Buying Market
July and August are great months to snag a good deal.
Historically, the summer housing market in Northern Virginia starts after Memorial Day weekend and goes through Labor Day. Traditionally, July and August tend to be two of the slower months. Buyers usually remove themselves from the market due to vacations and other summer plans. Although many people stop shopping for houses in July and August, these are actually great months for buyers. As inventory levels rise, the supply outpaces the demand, giving buyers more options. During this time, houses tend to linger on the market, providing the perfect scenario for buyers to snag a good deal.
The summer months typically mean less competition for first-time home buyers.
The summer market is the ideal time to be a buyer, especially for a first-time home buyer. During the spring market, the competition is high and the stakes are even higher because houses do not stay on the market for very long. During the summer, there is usually less competition among other home buyers. With fewer buyers and more houses on the market, the pressure to sell forces the prices down. Homes do not move as quickly during the summer. This gives home buyers more time to make a decision. However, rising interest rates are changing the typical trends.
Interest rates are motivating buyers off the fence.
This year, the biggest difference in Northern Virginia’s summer housing market is that inventory levels are still remaining relatively tight (less sellers and more buyers). The likelihood that interest rates will continue to rise is motivating buyers to purchase a house sooner than later. According to CNN Money, “Mortgage rates have been climbing. The average rate on a 30-year fixed rate mortgage climbed to 4.66% this year in May, the highest in seven years, before falling slightly in recent weeks.” Read the full article. Historically, we have seen a quick drop after Memorial Day weekend. However, Northern Virginia’s spring market has continued due to these factors. We are actually seeing more buyers enter the market due to the rising interest rates. It has been a sellers’ market recently with inventory hovering around 1 month. Usually, in the summer we see inventory rise as more homes come on the market and we tend to have less buyers. However, this year we have more buyers in the market because of the fear of rising interest rates.
Supply and demand will hit an equilibrium this summer.
In the past, seller supply usually outpaced buyer demand. This summer, we believe that seller supply and buyer demand will hit an equilibrium due to increasing interest rates. Nonetheless, this summer is still a good time for home buying in Northern Virginia. We are seeing signs of the market starting to slow on our current listings. As a result, the buyers that we represent are able to negotiate better deals. This was not an option a couple of months ago.
Sellers need to price their homes competitively to stand out from the competition.
Pricing and cosmetic upgrades make all the difference when selling during the summer. Sellers should focus on competitive prices. Pricing the home attractively will draw more buyers away from the competition. This will lead to better results in the end.
Final Tips for Home Buying This Summer
Those who want to buy a new house in Northern Virginia this summer but need to sell their current home first can get a bridge loan. A bridge loan allows sellers to pull equity from their current home for the down payment on a new house. If our client finds a house over the summer, we can target the closing date for September. This would allow our client to take advantage of the fall sellers market, by listing their current home in September. If the current home goes on the market in September, the first mortgage payment on the new home won’t be due until November, thereby taking advantage of both markets!
Click here to see a our current listings and coming soon properities. If you are interested in buying or selling this summer, call 571-249-3551 or send us a message through our Contact Us page.