May Real Estate Sales in Northern Virginia See Upswing in Repeat Buyers
Sixty percent of May real estate sales in Northern Virginia were composed of repeat buyers. This is in contrast to April sales where sixty percent of the buyers were first time home owners.
First-time buyers, taking advantage of their $8,000 tax credit incentive, have bought the “starter homes” on the market – encouraging more sellers to move up to a new, larger home. In fact, today’s environment, with lower prices for everyone, is the perfect model for “moving up”.
Here is why moving up to a larger home is better now: because all properties in the area have depreciated by the same percentage. Assume a home was valued at $250,000 and then depreciated by 20%, leaving a current value of $200,000. A previously valued $500,000 home at 20% less is now $400,000.
A homeowner would sell their home for $50,000 less than its high value, but would buy the larger home for $100,000 less, giving that homeowner a $50,000 positive increase.
Take a look at the graphs below to see how housing inventory is doing in your area:
If you, or someone you know, think now is the time to consider “moving up”, please contact me at 703.927.4554 and let see how the numbers work for you.