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Spring Real Estate Market Update
We have officially entered into the heat of the Spring Real Estate Market, which is typically the busiest time of year for buying and selling a home. During these months we tend to see the biggest chunk of inventory hitting the market and have buyers who pondered buying all winter long who are now ready to make a move.
However, the 2019 market has kicked off in an interesting way. Active listings are down 21 percent from this same time last year, which is proving very difficult to help our buyers find homes but has been great for our sellers. “Days on Market” are down nearly 26 percent, which is certainly the result of the low inventory.
Why is inventory low?
If sellers don’t have to move right now, they aren’t. Sellers are waiting to see what the next few years of “Amazon Effect” may do to their property values.
Why are buyers buying?
Historically low interest rates are a big factor. According to Christian Hartung, senior vice president of Guaranteed Rate, says, “30-year mortgage rates are down nearly .750% since the end of last year. Ultimately, I expect interest rates to continue to fall as global economic growth slows even more. We expect the Fed to actually LOWER rates at the end of this year or the beginning of next.”
We see the “Amazon Effect” in play here, too, with buyers trying to get in before potential property value increases.
What we are seeing this spring:
- Multiple offers are the norm.
- Homes are selling quickly! Sometimes in as little as a few hours.
- Offers are escalating above the original asking price.
- Buyers are waiving home inspections all together.
- Very tight financing and appraisal contingencies.
- Closings in 30 days or less.
Our advice:
In a market as competitive as this one, it is imperative to work with a great lender, one who understands the local market and can meet these shortened contingency periods. It is not always the highest offer that wins; dates and contingencies play a huge roll and who your lender is matters!
It is also imperative that you work with a real estate agent who has knowledge in the area you are looking to buying. They need to be someone who can find off-market opportunities and get you into homes before they list on the MLS. Most importantly, you need an agent you can trust. In order to write a competitive offer, you are going to need to waive contingencies; you need someone knowledgeable to guide you through the decision process to create a sound and rational offer.
- About the team
The Patterson Group is one of the most experienced and trusted real estate teams in the area, serving Alexandria, VA for over thirty years. We offer professional, hardworking, detailed and friendly service and a large network of contacts and resources accrued over our many years in Alexandria real estate. Comprised of seven Alexandria locals, six of whom are licensed realtors and three of whom are accredited staging professionals, The Patterson Group is passionate and knowledgeable about Alexandria, VA and here for all of your Northern VA real estate needs. Allow us to help you find your home here and discover all that the Alexandria lifestyle has to offer.
400 South Washington Street
Alexandria, VA 22314
703.310.6201
