The housing economy headlines you see on the news may not necessarily reflect what is happening in our local market. But those stories can be scary, especially if you were effected by the crash in 2006-2008. But if you’ve lived in the Northern VA area for awhile, you know that we have a perpetual lack of inventory and high buyer demand.
The good news is, our local market is not crashing. In the Potomac Falls area of Sterling (and most of Loudoun County), sales are down by 28% compared to this time last year. Many homeowners are loving their artificially low interest rates don’t want to give them up, which makes perfect sense. And thanks to the pandemic, homeowners have gained substantial equity in their homes, so the risk of foreclosure or short sales are very low.
The slight decrease in price can be attributed to the higher interest rates. Monthly payments have increased significantly and we aren’t seeing the bidding wars and intense competition currently (in most cases). However, people still need to move due to life situations, such as job transfers, divorce, death or even moving in parents. If you are able to afford the home you want and need, now is a great time to take advantage of less competition.
However, if you are waiting to the rates to drop before you start shopping, just be ready for higher prices because. When the rates drop, more buyers will enter the market and we’ll be back to multiple offer scenarios.
If you ever have questions, about what our LOCAL market is experiencing, I am here to answer with facts and figures, not pressure. Your situation is unique and I am here to help you make informed decisions! Always happy to talk real estate!!
