Average home prices in Northern Virginia have increased by 3 percent to $554,274, while the number of home sales inched higher by 0.1 percent from July 2006, according to the Northern Virginia Association of Realtors.
These numbers indicate a real estate market in Arlington, Alexandria and Fairfax that is stronger than overall regional and national markets. Both in the greater Washington region and across the country prices went up but sales volume was down.
“We call it a victory, when you have pluses” in both categories, Northern Virginia Association of Realtors spokeswoman Jill Landsman said. “Buyers are getting a good deal, so their hesitation” in making a purchase has lessened. The buyers are doing a lot of homework. They’re more savvy and they’re not flippers. They’re in the [market] for the right reasons — to build equity.”
The association also predicted interest rates would drop in the next year, enticing more buyers to the market.
“The 30-year fixed-rate mortgage is forecast to average 6.7 percent in the fourth quarter and then ease to the 6.5 percent range next year,” said Lawrence Yun, chief economist for the National Association of Realtors.
Yun’s prediction that rates would rise this year echoed a move by Reston-based mortgage giant Freddie Mac’s decision to raise the interest rate on a 30-year fixed rate loan to 6.62 percent, up from 6.59 percent. This is a full percentage point higher than the rate at the same time last year.
The company said the subprime mortgage meltdown did not cause the uptick.
“Problems in the nonprime mortgage market where funds are expensive and hard-to-get have not affected the prime conforming market,” said Frank Nothaft, chief economist at Freddie Mac.
dfrancis@dcexaminer.com
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Seriously, wouldn't you love to have a little house in the model of the Shire from Lord of the Rings? How energy efficient?!?! Keep the soil on top of the roof and around most of the walls and you keep about a 60-65 degree temperature year-round. Little need for AC; limited need for heat (especially since the insulation is good). Problems: need a dehumidifier. Also would have a concern for mold as well as the need to mow and water the roof on occassions.
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