NOVA Homes Blog: Don't Worry About Mortgage Rates— Northern Virginia Real Estate Tip!

Tuesday, August 6, 2013

Don't Worry About Mortgage Rates— Northern Virginia Real Estate Tip!

Homebuyers everywhere may finally be able to breathe a sigh of relief as rapidly rising home prices in NOVA real estate are said to finally be curbing.

According to data from CoreLogic, home prices rose 10.3% in the first quarter of 2013. That's the first double-digit gain since the peak of the housing bubble seven years ago! But don't worry, NOVA homebuyers— CoreLogic predicts these rises will soon come to a halt. As rising home prices and mortgage rates start to affect home affordability, and housing demand and inventory begin to level out, we will begin to see rapid price appreciation slow down in 2014.

"Record levels of affordability, a slowly improving job market, and very small inventories of new and existing homes for sale will continue to drive U.S. home price appreciation during the summer," said David Stiff, Chief Economist for CoreLogic Case-Shiller.

Stiff also added that "although a small number of metropolitan areas show year-over-year declines, it is likely that home prices in these cities will turn positive by the end of the year."

Another concern addressed by CoreLogic is the big housing bubble question. While double-digit gains usually indicate unsustainable appreciation and potentially bubbles, CoreLogic suggests there is no need for worry now as "home prices remain 26 percent below their peak nationally and are even lower in many metro markets."

Inventory has indeed been tight in many local real estate markets, and yet builder confidence for new construction homes has been soaring. This is also a great sign for NOVA real estate as along with high confidence comes an increase in pace for new construction homes.

So homebuyers in the Northern Virginia area need not worry about deciding to purchase a home in NOVA as the rapidly rising rates and prices will indeed slow down soon. Are you ready to buy a house in Arlington, Alexandria, or Fairfax County now? Contact me today to see the best homes available and start the search for your own piece of real estate!

Earle Whitmore

Long & Foster Real Estate, Inc.
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When you first meet Earle, she greets you with a firm handshake and a broad smile. She has a certain charm and friendly nature that immediately set you at ease. As you talk to her, she listens intently. You can see by the earnest look on her face that she’s already developing ideas and strategies to accomplish your goals. By the end of your conversation, you’re surprised that someone can have such a clear understanding of your needs after just one meeting. This is the essence of Earle’s real estate service. She’s a straightforward businesswoman who doesn’t let up until her clients are satisfied.
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