Updated Interest Rates 4/20/2013

   Home prices throughout Northern Virginia have risen from the lows of 2008.

Price increases vary by neighborhood, some benefiting more than others. Georgetown South is a community in Manassas City that has struggled since being hit hard by foreclosures and higher than average crime.  The improving housing market is now positively effecting the GTS community with increasing sales prices.  See the chart of recent sales in GTS.

   I recently sold 3 homes in the Georgetown South community.  All three homes were sold to investors that plan to renovate and rent the homes.  Rental prices have increased, justifying investment in the GTS community with a good return in rental income.  If you are considering buying an investment property, contact me.  I would be happy to help you choose the right income property for you. 703-501-3626

The real estate market is seasonal. Checkout the graph to see new listing inventory and pending home sales. Market activity is highest March-June. The 2013 Spring Market in Northern Virginia is starting out with the lowest inventory since 2005. Low inventory and high demand should continue to push sales prices higher.

According to NAR the pending sales index rose $4.5% in January. Forecasters expected only 1%.

Mortgage insurance will increase for all buyers using FHA loans after April 1, 2013. The Mortgage Insurance Premium (MIP) will increase .1% of the loan amount.  

The BIG news is Mortgage Insurance CANNOT be canceled.  Buyers using FHA loans with less than 10% down will have to refinance to a conventional loan in order to get rid of the insurance. Mortgage Insurance on FHA loans with 10% or more down payment will end after 11 years.

If you are under contract and your lender has filed for an FHA case number before April 1, 2013 you will not pay the increased mortgage premium and you will still be able to cancel your mortgage insurance after 5 years and 22% equity. Contact your mortgage lender for more information about FHA Mortgage Insurance.

2012 proved hard for first time buyers to enter the real estate market. Lack of supply frustrated many buyers, causing them to give up or put their purchase on hold.  The glut of homes on the market shrunk drastically as foreclosure dwindled and traditional resales were slow to enter the market.  2013 predictions are for that trend to continue.

The following article is from Realtor Mag, a National Association of Realtors publication.

--First-time home buyers are playing a larger role in the housing market, but they’re finding big changes. 

Thirty-nine percent of home sales nationwide were from first-time home buyers during the 12-month period ending June 2012, according to the National Association of REALTORS®. That's up from 37 percent a year earlier. 

But while first-time home buyers once had a huge inventory of homes to choose from, now they’re finding tightened supplies and steeper competition for what’s left. 

Housing inventories are hovering at record lows in many markets, limiting supply. First-time home buyers face increased competition from investors, who are often trying to snatch up the same bargain-priced housing deals. Investors often make all-cash offers, too, which makes it difficult for buyers requiring financing to compete against them. Also, banks have tightened up their underwriting standards, creating more hoops in just qualifying for financing. 

It’s not easy to be a first-time home buyer, some say. But first-time home buyers are critical to a healthy housing market. They allow existing home owners to sell and trade up into larger homes. 

To respond to the changing housing market, first-time home buyers may need to broaden their search and be more “flexible and compromise,” says Chip Rowand, a Broward County, Fla., real estate professional. 

Also, first-timers shouldn’t automatically settle for a Federal Housing Administration mortgage due to the low down payment requirements (usually 3.5 percent of the purchase price). The FHA can have several restrictions that makes some sellers prefer buyers who offer cash or who are using conventional loans, says Stephen B. McWilliam, president of Greater Fort Lauderdale (Fla.) REALTORS®. Some conventional loans require just 5 percent down and so may serve as an option for first-timers. 

First-timers also need to be able to act fast and be able to have their financing processed quickly if they are going to stay competitive. Some banks won’t sign off on mortgages for eight to 12 weeks. But some sellers won’t wait that long. Some housing experts suggest first-timers look into working with a community bank or local mortgage banker, which often don’t have as long a wait. ---

​Interest Rates as of 10/26/2012

Contact Debbie Gorman anytime to get pre-qualified for your next home. 571-215-9716. It only takes 10 minutes.

​Interest Rates as of 8/25/2012

Contact Debbie Gorman anytime to get pre-qualified for your next home. 571-215-9716. It only takes 10 minutes.

​Interest Rates as of 7/14/2012

Contact Debbie Gorman anytime to get pre-qualified for your next home. 571-215-9716. It only takes 10 minutes.

​Interest Rates as of 7/8/2012

Contact Debbie Gorman anytime to get pre-qualified for your next home. 571-215-9716. It only takes 10 minutes.

Here are today's Interest Rates from Debbie Gorman