Residential real estate prices have experienced the biggest jump in 6 years as recently reported by the S&P Case-Shiller index. It seems that the news media is reporting practically daily that the real estate market is back. The buyers have entered the marketplace in droves, particularly in the lower price ranges. The Sellers don’t seem to be completely convinced because inventory is uncharacteristically low. So Sellers come back!
In the Washington, DC metro area in 2013 the “jumbo” conforming loan amount is $625,500. This loan “conforms” to the Fannie Mae/Freddie Mac guidelines. Buyers typically utilize a 20% down payment loan, which means anything up to about $750,000 a buyer frequently obtains a conforming loan. Homes on the market priced up to $750,000 are in the “sweet spot” of the Northern, Virginia market area. These homes are selling fast – often with multiple offers and escalation clauses.
I have been working with 2 buyers lately that have lost out on offers they have made on homes in the Northern Virginia area. One of them wants to purchase a single family home in McLean around $700,000. This is particularly challenging because the builders are back in droves and are snatching up any home in this price range in McLean that is on a decent lot. We have written 2 contracts on homes in McLean that have not been accepted because the buyer wouldn’t include an escalation clause with the offer.
The other purchaser is in the market to buy a town house with a 1 car garage in the Tysons Corner area, sales price under $600,000. He believes that it is his right to have a home inspection so that he can fully understand the condition of the property. We have written 3 offers and none of them have been selected because the Seller received multiple offers, including those that are paying cash and have no contingencies, such as for a home inspection.
The missing element in my experience is more homes to buy. Currently homes priced under $1 million in the Northern Virginia market place are at an all time low supply relative to demand. Sellers come back – the buyers are back and all we need now is your home to buy!
The link to the CNNMoney article entitled: Home Prices post biggest jump in 6 years:
http://money.cnn.com/2013/01/29/news/economy/home-prices/index.html?hpt=hp_t3
Karen Briscoe and Lizzy Conroy are active and experienced Realtors® in the Northern Virginia, Washington DC market place and would be delighted to assist whether for home buying or selling. The Huckaby Briscoe Group of Keller Williams Realty was recognized as one of the Wall Street Journal Top Real Estate Teams in the United States. Please contact via the means most convenient for you: www.HBCRealtyGroup.com, 703-734-0192, Homes@HBCRealtyGroup.com.