As the cliché saying goes, now may actually be the best time to buy a home in Dominion Valley Country Club. As I review economic statistics, inventory data, days on market, and interest rate data, now is an amazing time to buy a home in Dominion Valley. There is ample inventory available for those families that wish to step up to a luxury single family home in the community. Many sellers are willing to accept contingent offers and interest rates are crazy low. Economic and monetary policy have mortgage professionals anticipating interest rates to rise next year. Some area lenders are forecasting a 1% uptick by year end of 2015. Let’s take a look at the interest rate impact for home sales in this community…
The average sales price in the community is roughly $600,000. Current rates are approximately 4.125% for a $480,000 loan (assuming a 20% down payment for this scenario). Monthly anticipated principal and interest payment for this scenario is approximately $2325.00 per month. If interest rates tick up to 5.125% the purchaser would only be able to afford a $533,000 home to keep their payments at the $2325.00 per month mark with 20% down payment. I will continue to preach that interest rate swings have a greater impact to homeowner affordability than price. Buyers, don’t wait for higher interest rates.
Let’s take a look at the current inventory. At a glance today, I see 45 homes currently available for sale; and 9 homes pending contract. The current absorption rate for Dominion Valley is about 5 homes per month. We have a 9 month inventory. That means that Sellers that are active, may be willing to offer incentives and value to today’s buyers!!! This is a Buyers Market!!!
If you are planning on staying in the area for at least 3 to 5 years, this is an incredible buying opportunity that should not be missed. Click here to search for homes available in Dominion Valley...
Northern Virginia REALTOR®
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