Tuesday, April 30, 2013

2013 NOVA Housing Market Changes


With the real estate market in full effect in most areas and more homebuyers jumping off the sidelines, it's important that NOVA residents on the move know what they are in for with this year's housing market. It's no secret that many changes have occurred in the real estate industry over the last few years and with the following list of ways the market has changed, you'll be ready to make an informed decision and purchase in Northern Virginia.

1. Homes are more expensive than last spring
The economy has improved and mortgage rates have declined, thus boosting buyer confidence and demand. As a result, home prices have begun to soar. According to the National Association of Realtors, the national median home price increased 10.1% in November, a big change from the same time the year before. Prices are also expected to rise another 2.1 percent this year.

2. Loans are getting more expensive
Interest rates are expected to rise slightly this year and the costs associated with securing a loan are rising as well. Last spring, the Federal Housing Administration (FHA) increased mortgage insurance premiums for minimum down-payment loans (those with less than 5% down) to 1.75% of the loan. The FHA also raised its annual monthly premiums to 1.25%.

3. Low inventory
While mortgage rates are great, there are not many homes available for sale. Buyer demand and favorable purchasing conditions have homes being taken off the market in no time, yet many NOVA home sellers are not taking advantage of this great time to place their homes for sale. On the contrary, if homebuyers see a property they like, they can be assured it won't last long.


Earle Whitmore
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