Our latest articles
August 28, 2022
Arlington VA Housing Market Slowing Due to Economy
You may have noticed that the housing market in Arlington, Virginia is slowing down. A recent article reported that Virginia’s housing market is seeing the sharpest drop in sales since the beginning of the pandemic. Housing prices keep rising, however, because inventory is low.
Being a buyer in today’s market isn’t easy. Interest rates are high, housing prices are high and there isn’t much inventory to choose from. Consider that in June 2021, nearly 17,000 homes in Virginia were sold. In June 2022, that number sat at just over 13,000. The Virginia Association of Realtors said this is the biggest drop since the pandemic.
If you have a property to sell, you might be wondering if you should bite the bullet and list it now or wait. While only you can make this decision, it is important to weigh all of your options because the VA housing market is changing. By next year, you may have a limited buyer pool and a more difficult time selling your house.
How Does the Economy Affect the Housing Market?
Home sales are directly tied to the economy’s health. As the economy rises and falls, so does the housing market. As the economy slows, the supply of money tends to become more restrictive. As money becomes harder to borrow, fewer buyers enter the housing market.
Currently, we are starting to see this happen. Inflation, housing prices and mortgage rates are high, putting many people out of the market. Unfortunately, this could cause home sales to dry up. This is a concern, especially as more experts are predicting another recession within the next 18 months.
Why Now is a Great Time to Sell Your Arlington, VA House
If you have a property in Arlington to sell, now might be the best time to move forward. 4 Brothers Buy Houses purchases undesirable or distressed properties. We pay cash and take houses in any condition. Because we do not use bank financing, we can typically close in about two weeks.
Also, our cash buyers purchase properties in their current condition, which means you will not be required to make any improvements or repairs. You can even leave your belongings in the house, which is great if you’re hoping to sell a rental or investment property.
By selling to our cash buyers in Arlington, VA today, you can take advantage of a still-desirable housing market and erase the worry of inspections, appraisals, showings, realtor commissions and closing costs. Get in touch with 4 Brothers Buy Houses to get a free cash offer on your property. There is no obligation to continue, so see what our cash buyers have to offer you today!
August 15, 2022
Increasing Mortgage Rates and How They’re Affecting the D.C. Housing Market
Remember when mortgage rates were at their lowest point in 2020 and 2021? As a response to the coronavirus pandemic, the 30-year fixed rate fell to 3 percent for the first time and kept falling to a new record low of just 2.65 percent in January 2021. Fast forward to today, and interest rates are looking very different. They continue to increase, with the average 30-year fixed rate at 5 percent at the time of this writing.
Let’s talk more about why mortgage rates are increasing in the D.C. area, how long we can expect them to trend in this direction and how the housing market will be impacted.
How Interest Rates Affect the Housing Market
Mortgage loans come in two main forms – fixed rate and adjustable rate. The interest rate is the amount charged by a lender to a borrower to use their assets. There are a number of factors that affect interest rates, such as the state of the economy.
A country’s central bank sets the interest rate – in the U.S. it’s the Federal Reserve Board – and each bank uses this to set their APRs (annual percentage rates). Central banks tend to raise their interest rates when inflation is high because it helps bring inflation back down. High interest rates discourage borrowing and reduce consumer demand.
Since inflation is increasing, the cost of everything is going up, and this includes mortgage rates. Even though interest rates are high right now, they are actually a good deal by comparison. The long-term average for a 30-year mortgage in Washington D.C. is around 7 percent.
D.C. Mortgage Rate Predictions for 2023
Some experts predict that mortgage rates will hover around 5 percent next year, while others say they expect rates to reach 6.7 percent by 2023 and 8.2 percent by 2025. If the latter does happen, it will be the first time that the average 30-year rate moves past 8 percent since 2000.
Ongoing inflation is a huge concern for consumers and investors alike. The market is unpredictable, and there are many external influences that are affecting the U.S. economy, including the Ukraine/Russia conflict.
Hopefully, mortgage rates won’t go up to 8 percent in the next few years, but it’s safe to say that they won’t be falling, either. Therefore, if you’re in the market to purchase a house or sell yours, now might be the best time to make these decisions. Otherwise, you could be working under much different circumstances.
With Rising Mortgage Rates and Inflation – NOW is a Great Time to Sell Your D.C. House!
Things are quickly changing in D.C.’s housing market. The market is slowing down and giving buyers more control, gradually shifting over to a buyer’s market. Consider that 40 percent of listings currently on the market in the D.C. area have undergone a price reduction.
If you have a property that you want to get rid of, now is probably the time to do so. We will be moving into the winter months before you know it, and the market cools down considerably at this time. Right now, you can likely sell your Washington D.C. house for more money, in a shorter amount of time and with fewer buyer demands.
4 Brothers Buy Houses will pay cash for your D.C. house. We use our own money – no financing – which helps the process move quickly. We can start the closing paperwork once you accept our offer, and you don’t have to worry about appraisals, inspections, home improvements, repairs, closing costs or realtor commissions.
Contact our team of cash buyers in Washington DC today to get a free cash offer on your house. It’s no obligation, so see if the numbers work for you!
August 2, 2022
I’ve Fallen Behind on My Payments. Can I Still Sell My Washington DC House?
If you’re behind on your mortgage payments and you don’t see your situation improving, you might be wondering if you can sell your house in Washington DC. This will relieve you of your mortgage payment, and you can either rent or move in with someone while you improve your financial situation.
Let’s learn more about selling your house when you’re behind on your payments and the benefits of doing a cash sale.
Can I Sell My Washington DC House if I’m in Foreclosure?
The foreclosure process typically begins once you fall several months behind on your mortgage payments. In Washington DC, the servicer can’t officially begin the foreclosure process until you’re 120 days past due, though there are a few exceptions. This 120-period is meant to give homeowners in Washington DC a chance to catch up on their payments.
The best time to sell your house is when you’re in pre-foreclosure. Once you’re in foreclosure, it’s only a matter of time before the bank has the legal ability to reclaim your house and sell it to recoup their money – and you’ll be forced to vacate. But you can sell your home any time before redemption.
The benefit of selling your house when you’re in pre-foreclosure is that you have more time. You can make small improvements and work with a realtor to sell your home, or you can sell the property for cash. If you wait until foreclosure officially begins, you’ll be working against the clock.
Knowing What Your Property is Worth
If you’re behind on your mortgage payments, but your house is worth more than what you owe on the loan, you’re in a good spot. You can sell the house and use the profits to pay off the loan. Things get trickier when you owe more on the house than what it’s worth, something called an underwater mortgage.
In this case, you may want to sell your Washington DC house in a short sale. You will end up “short” when paying back the lender, but they will have already agreed to accept this. Getting your bank to agree isn’t easy, however. Lenders lose money in short sales, so this is not an ideal solution. That being said, some lenders will take a short sale over a foreclosure, so they may agree to it.
Other Options to Consider
As long as you can sell your home for more than what it’s worth, this is what you’ll want to move forward with. Find out how much you own on the loan, along with any fees. Then you can work with a real estate agent and/or cash buyer in Washington DC to determine how much you’ll get for your property.
What makes a cash sale ideal is that the process is quick, there is no need to make improvements or repairs and most costs are eliminated – inspections, appraisals and closing costs.
Other options you can look into include:
- Loan modification
- Mortgage forbearance
- Renting out the house
- Refinancing for a lower payment
To get a free cash offer on your Washington DC property, contact 4 Brothers Buy Houses. We buy houses as-is, and we often work with people to stop foreclosure. Find out what we can do to help you today!