Sometimes you get lucky...just after last month's market update, the sales of existing homes went up 5.5% for September, and the highest level in 11 months. It just goes to show that the media is typically 3 months behind in market stats when dealing with real estate. What caused this surge? Anxious sellers were willing to work more with buyers, low interest rates, the increase in loan amounts for Fannie, Freddie, FHA and VA loans up to $729,750 coupled with low down payments and no down payments in the FHA and VA loan categories. Plus the added bonus of the $7,500 tax credit for first time home buyers.
Right now, I am standing upright and not lying on my back which could have been one of the results of my market update last month. Inventory levels are staying relatively stable, contracts continue to come in at a steady pace and we continue to see rates decline making now an ideal time to buy or sell real estate.
As we head into the holiday season and with the winter months ahead of us, we should experience a slow down. It is typical to see this seasonal adjustment this time of year. However, that being said, it is possible to see a potential boost to sales as we close out the year. The new loan limits for FHA loans are being adjusted downward to $625,000 on January 1st of 2009. If people are looking to buy a home at the current higher limit of $729,750, they need to do so and settle prior to the end of the year which could result in a slight jump in sales. We shall see.
For up to date information about the real estate market, feel free contact one of our educated, experienced agents who serve the Washington Metropolitan Area at www.gateway2realestate.com.
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