The past 48 hours have completely changed many things in the US. Announcement from WHO, the Stock market diving down into the bear market, NCAA and NBA announcements apart from colleges and now local public schools.
Between this commotion should you hold off on buying a home in the Northern Virginia real estate market?
Here are some of my personal thoughts reading up on various economists across the continent.
- Real estate is a very local driven market. If you believe our local economy will sustain and bounce back don't panic.
- Interest is very low ..so low the banks on Wednesday (March 12th) raise the rates to control the flood gate.
- Many homeowners I have spoken with; they did opt for cash our refinance however to a small margin. Remember we haven't forgotten to overextend our mortgage.
- There may be a seller panicking at the moment and they may negotiate. 48 hours prior sellers were the king due to low inventory. If you could not compete in a HOT housing market of Northern Virginia this is the time to reconsider.
- If you plan to stay in the home LOOOONNNNGGGG term the purchase decision should be made when you are ready not driven by the noises around you.
- Yes, we may have a sluggish economy in Q3 or maybe well into '21 Q1 but we all need a roof over our head.
- We are in health crises and not financial meltdown crises unlike 2008.
- If the real estate market slows down the rental market will go up. Instead of paying for someone's mortgage buys your own roof. Investors take advantage of low rates and lock your long term investment.
- Unlike Stock, Real Estate did not loose 10%+ valuation in a short period. Again going back to real estate was never a liquid asset and won't be. It is a long term investment.
- When everyone gets over the panic and comes back to the housing market again we are going to go through the same cycle in the Fairfax and Loudoun county real estate market "HOT MARKET, LOW INVENTORY, and MULTIPLE OFFERS."
Consult your financial advisor if and when you are ready to invest in real estate.