Is it still a buyer’s market today in Fairfax? The state of the market for buyers in Fairfax . As experts in the Fairfax real estate market, we get asked this question a lot.
The answer isn’t as simple as yes or no.
The State of the Market for Buyers in Fairfax VA
First off, it really depends on the property type and location.
Single-family homes in great locations that are priced well have been flying off the shelves. There’s a lot of demand in the market for certain areas, while others can seem like ghost towns.
Buyers are often looking for the same thing – good neighborhoods, access to transportation, shopping, good schools, close to work, etc. Properties that deliver all these are definitely a hot commodity. Sellers with a highly desirable property are in control of the market.
But for condos and townhouses – especially those a little off the beaten path, or with some funky features – it can be quite a different story. Prices were down in certain areas of Fairfax, but seem to be rebounding as the rental market increases.
Investment properties are in demand. The massive amounts of foreign cash flooding in to invest in US real estate have impacted the Fairfax market in unique ways.
Overall, those people in a position to pay cash for properties have been picking up the good deals in the marketplace.
Lots of sellers are trying out speculative prices just to see if anyone bites, but most investors are walking away from deals that don’t pencil out.
Financing is still a major obstacle for buyers. Banks are being incredibly strict, requiring lots of money down and even changing their terms at the last minute. It’s not uncommon for approved buyers to get their loans pulled right before closing escrow, although it’s getting better than it was just a couple of years ago.
Overall the markets remain incredibly polarized – there is a lot of action at the very top and the very bottom, with the biggest challenges in the middle.
Sound confusing? It is. But We Can Help.
There’s a lot of shakeup in the US economy still taking place, and the markets are moving fast in lots of directions at once.
We’re investing in Fairfax because we believe in the community and the people here.
If you need to sell a property near Fairfax, we can help you.
We buy properties like yours from people who need to sell fast.
Home sales are down because inventory is low
Historically low inventory has been a theme in the Virginia real estate market for the past two years. The lack of new builds and construction materials has put a strain on the limited housing inventory available.
According to the latest numbers from the Northern Virginia Association of Realtors, the number of homes on the market has declined in most parts of the region. The overall number of homes coming on the market is now about one-third of what it was a year ago.
Despite this, prices are still rising, particularly in the Fairfax County area. The median sales price of a Fairfax County home was $600,000 in September. This is up $30000 over the year before.
However, the biggest challenge in the real estate market is the lack of inventory. Inventory will only start to catch up with the demand in the coming year. A shortage of inventory can lead to lots of competition for homes.
In the Virginia real estate market, the most common way to measure inventory is by looking at months of supply. Months of supply are calculated by taking the active inventory of listings and dividing by the current sales activity. This ratio reflects the supply of homes needed to sell all homes at current market demand.
Home prices are rising faster than in neighboring counties
During the late 1990s and early 2000s, exurban counties saw explosive growth. More recently, new construction has increased in the urban core jurisdictions of D.C. and Virginia.
The housing market has been strong for years, with high household incomes in the Washington, D.C. area and ample open space. Despite these advantages, the supply of available homes is low. This is causing a slowdown in sales.
Home prices are increasing throughout Virginia, with the highest increases occurring in Northern Virginia counties. While prices are increasing, there is a shortage of available homes. These shortages are expected to slow the state’s housing market in the coming years.
The average price of a single-family detached home in Virginia is nearly $184,700. This is a significant increase over the past year, and it is expected to continue. This increase is due to increased interest rates and a lack of inventory.
In the past few months, the supply of homes has dipped below the demand. However, the market is expected to rebound in the spring of 2020. The number of active listings is up in many local markets. This will help to maintain a more favorable market for sellers.
VA programs for first-time homebuyers
Buying a home is one of the biggest purchases that a person can make. Thankfully, there are many financial assistance programs to help lower the costs of homeownership. In addition, some programs eliminate the down payment requirement altogether.
If you are interested in purchasing a home, you may want to look into a VA program. These loans are designed to help first-time homebuyers purchase a home in Virginia. These loans typically have a low down payment and low interest rate.
A down payment assistance grant is a program that provides a portion of the purchase price of a home in cash. In return, the homebuyer must be a first-time homebuyer and meet certain income and credit requirements. These grants are typically available only for a limited time. They also come with stipulations, so you must read the fine print.
A mortgage credit certificate is another financial assistance program available to first-time homebuyers. This certificate is issued to qualified applicants and is a tax credit that can be used to reduce the federal income taxes that you owe. You are only able to get a certificate if you are approved for a mortgage by a participating lender.
Jumbo loan limits
During the past few years, the housing market has been growing fast. This is making it harder for buyers to find traditional jumbo loans. With these stricter requirements, jumbo loans are harder to get than conventional loans.
While jumbo loans can provide a way to purchase a home, they carry more risk. Lenders review the income and debt of borrowers and determine whether or not they have the ability to pay back the loan.
Jumbo loans may have higher interest rates than conventional loans. Lenders may also require a higher credit score or higher down payment.
In order to qualify for a jumbo loan, a borrower must have a high credit score, no excessive debt and a large down payment. Most lenders require at least 20% of the purchase price of a home as a down payment. This amount may be higher for buyers in high-cost areas.
Jumbo loan limits can be as high as $970,800 in some areas. This is higher than the typical conforming loan limit of $647,200 for one-unit property in most areas.
