Win As A First Time Homebuyer

This is a paid post contributed by a Patch Community Partner. The views expressed in this post are the author's own, and the information presented has not been verified by Patch.

There is a palpable ebb and flow to the annual Real Estate Sales Cycle. Spring is commonly known as the busiest time while late summer and winter typically represent the slower periods of the cycle. There are also commonly termed; “Sellers” and “Buyers” markets. Most people agree and of course most of the data supports the fact that Northern Virginia is currently in the midst of a strong sellers market and has been for the last several years. If you’re reading this article this is not news to you I’m sure. We’re all hearing the same stories about escalating prices, sellers getting just about everything they want, and debates on whether now is the right time to buy or not.

Putting opinions, broader market forecasts, and the occasional doomsday is coming for real estate headline aside; it is in fact a great time to buy. I know what you’re thinking now; wait, what did you say?

You did read correctly; now is a great time to buy! In fact; Northern Virginia Association of Realtors (NVAR) data shows that the best time to buy a home in Northern Virginia (NOVA) over the last decade has consistently been the months of January and February.[1] Specifically; each year since 2011 the average sales price of homes has been at it’s lowest for the year during the months of January and February. The only exception to this trend was during the financial crisis of 2008 and 2009. However; the data shows housing began recovering by 2010 and hasn’t looked back since. As of today; the average sales price in 2021 for a 3 bedroom attached home is $138,758 more than it was in 2007. Detached homes have done well too; a 3 bedroom detached home today is on average $168,094 higher in value than it was in 2007. Prices have been consistently rising at a moderate pace for more than a decade. The point being; Real Estate is a long game; purchasers who bought at the top of the market back in 2007 and each year since have benefited from consistent price appreciation. It is our opinion that this trend will continue in 2022.

Taking a broader financial view; money is readily available and interest rates are consistently lower now than before Freddie Mac started tracking them back in 1971.[2] In 2021 the 30 year fixed rate mortgage has consistently hovered at or below 3%. There is opportunity right now to borrow money at a historically low level for a very long period of time. The general consensus right now is that rates, rents, and cost of living are on the rise. Why not lower risk and exposure to this inflationary scenario by locking into a fixed rate loan and predictable housing cost for the long term? Real Estate is also one of the best investments you can make to hedge in an inflationary environment.

Ok; the final piece I want to address is timing. We talked about you as a buyer having better leverage on pricing early in the year; specifically the months of January and February. We talked about the opportunity to capitalize on some of the lowest interest rates on record, fix your housing cost, and invest to hedge the pending potential inflationary environment. Now let’s talk timing. If you want to purchase in January or February you should be looking for your next home right now, during the months of November and December. If you find a home in December or January you will likely want to lock in your interest rate for the standard of either 30 or 60 days. It is likely going to take 30 days for you to close on your new home which would put your closing date sometime in February or March; depending of course on the sellers schedule as well as yours. Also; it has been common for sellers to require a post close rent back period; typically negotiated to last between 30 to 60 days. A rent back period has potential to push your true move-in date further out into March, April, or even May. Of course not all situations are alike; they can vary quite widely. The point being; if you are interested in purchasing a home and want to beat this sellers market you should be very active right now. You will maximize your buying potential with lower prices and lower rates. You will maximize your bargaining power by staying one step ahead of the annual Spring Market where competition and prices tend to escalate as reflected in NVAR’s historical data. You will maximize your opportunity to be flexible by securing your price, interest rate, and loan early while also leaving time and an additional bargaining chip for a potential seller rent back.

Great opportunities to buy your first or next home are surfacing everyday. If you are interested in exploring these opportunities across the Vienna, Oakton, and Tysons Corner communities, contact us today. It’s never too early to start preparing for your next move!

About the Authors:
This article was co-authored by Michael and Gizelle Gorkowski who own and operate Gizelle & Co. They are licensed Realtors® in VA with a specialized focus in Vienna, Oakton, and Tysons Corner. Together they bring more than 25 years of collective Real Estate experience. As local residents over the last 15 years they have actively supported their community schools, sports programs, and various philanthropic organizations. When not working you can often find Gizelle and Michael on a local ball field, basketball court, or headed to the beach with their three boys. To learn more or speak with Michael or Gizelle directly you may contact them via email at gizelleandco@compass.com or phone at 703-606-4664.

[1] https://www.nvar.com/realtors/...

[2] http://www.freddiemac.com/pmms...

This post is an advertorial piece contributed by a Patch Community Partner, a local brand partner. To learn more, click here