Will Coronavirus Push Down House Values? 

Will Coronavirus Push Down House Values? 

This has been the big question on homeowners' and potential buyers' minds. With the news constantly updating us with bleak economic numbers, it's natural to think that the real estate market is also in bad shape. Homeowners are nervous that they have lost their equity and buyers think there are great deals to be had. However, the Northern Virginia real estate market is actually very strong, particularly for starter and step-up homes. 

Before Coronavirus, our market had low inventory. That means the number of homes available for sale did not keep up with the demand of buyers. Coronavirus has amplified that aspect of our market. Many would-be sellers decided to take their homes off the market or delayed selling, but there are still many buyers needing homes who are looking to take advantage of the incredibly low interest rates. Many buyers competing for fewer homes means that prices have gone up!

While there is a historically low number of home sales, the prices of those sales have reached a ten year high. 

Looking into the future, there is concern that the homeowners who currently have their mortgage in forbearance will be in trouble once their forbearance period is up and the moratorium on foreclosures is lifted. At that time, they will have to start making their full payments again or the bank will have the ability to foreclose on their home. If foreclosures flood the market, then home values will likely take a dip. If you are struggling to make your mortgage payments or if you are currently in forbearance and have concerns about your ability to resume your payments, let us know! We are here to help and can guide you through all of your options. 

The fact of the matter is, no one knows yet what will happen with those mortgages in forbearance, where interest rates will be at that time, or how much unemployment will continue to rise. We know what we know right now. What we know right now is that sellers who are properly positioned in the market are quickly getting offers for top dollar and buyers taking advantage of the great interest rates are needing to write quick, competitive offers to beat out the competition.