Updated: May 6, 2020
Currently, the real estate market in the DMV area, especially in Virginia, remain very favorable for homeowners considering selling their house. The historic low inventory and low-interest rate still reliably create a “multiple offers” situation, resulting in sales prices that are above market average. Right now, your house can still be sold quickly and at a premium price. If you’re in a position to sell, it is a great time to do it.
We can help you sell your property with minimum contact. For example, our VIP Seller Package provides you with scheduled showings, 3D virtual tour, 2D floor plan, and high definition photos. It is possible for a Buyer to buy your house without even setting foot in it. Contact us for more information about selling your house today.
6-24 Months Outlook
Based on the historic unemployment and mortgage forbearance levels, it is possible that home prices will decline in the next 6-24 months. Here are some of the key factors that contribute to this conclusion:
- High unemployment results in lost income, depleted savings, and increased debt load. All of these are critical factors in qualifying for a home loan.
- Lenders are increasing their loan qualification to safeguard against defaults. For example, Chase bank has announced that it now requires 700 FICO score and 20% down payment to buy a home. Wells Fargo also joins Chase and suspended applications for HELOC.
- Homeowners that are not able to afford their mortgage payments may be forced to sell or go into a short sale or a foreclosure in the next several quarters.
- Homeowners that are in forbearance now, may find themselves in a situation that forces them to sell after the forbearance period ends.
These factors could result in less qualified buyers and more homes for sale. If the situation is not too severe, this will simply return us to a more normal market where the supply and demand is more balanced, resulting in a Neutral market instead of a strong Seller’s market we are currently in.
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Pinyo is a full-service Realtor with Berkshire Hathaway HomeServices PenFed Realty and an insurance agent with McEvoy Insurance & Financial Services. He specializes in representing clients in the purchase and sale of residential and investment properties throughout Virginia and Maryland areas around DC.