Real Estate

Prices are low…how long will they last?

Now might be the best time to buy real estate in the DC area than any other time in the past seven years.  We are clearly at the current bottom of the market now with home prices and interest rates at all time lows. If you’re potentially in the market to purchase a home in the DC area, you have to realize that this bottom may not last long and prices may soon start to rise.

Consider this: While inventory is low, we will see several boutique projects coming on the market over the next several months.  Buyers coming out this Spring will like what they see exciting interior designs, top notch finishes and very attractive prices.   Take Eckington Hill for example…One of UrbanLand Company’s clients purchased these 1,300 sq. ft. 2 BR/ 2.5BA units from a bank in 2010 and is now offering them for only $300,000. These exact condominiums would have listed at $350,000 a few years back.

This same developer is working on a four unit Victorian building next door that will be named The Lexington.  As the current available units are released on the market and sell, developers with multiple projects in the pipe line will be eager to raise the prices on the next release of units as inventory is sold. It’s a simple concept known as the law of supply and demand.

Another reason to buy this year is the proposed changes being discussed for Fannie Mae and Freddie Mac. These changes are in addition to an increase in mortgage insurance fees taking effect April 19, 2011.  New changes being discussed include further increases in mortgage insurance and lower loan limits on FHA loans, higher fees that Fannie and Freddie charge lenders to guarantee pools of mortgages which will be passed on to borrowers and even minimum down-payments of 10% or more.  The changes to these institutions will likely take some time and will include incentives that will encourage the private marketplace to step in and create mortgage products to fill the void.

What this means to today’s buyer is that now is a great time to take advantage of FHA financing with only a 3.5% down payment, other 100% financing options and down payment assistance programs that are available today.

UrbanLand Company agents are a great resource for buyers to get the latest information about these programs and upcoming new condo development not on the market yet. Contact one today.

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