Should you buy a second home in Virginia? It’s a big decision. You’re talking about buying a second property. It is in your best interest to consider market conditions.
Today, we’ll determine whether now is the right time to buy a second home in Virginia.
Should You Buy a Second Home in Virginia?
Home prices in Virginia have steadily increased over the past few years. This trend is especially noticeable in areas with few homes for sale or where demand outstrips supply.
Home prices in Virginia rose 5.0% from July 2021 to July 2022, selling for a median of $421,100.
Now might be a good time to make an offer if you’re considering areas with a supply surplus. Areas with low demand might also be advantageous for buyers. With less competition, you might be able to get more for your money.
Current Mortgage Rates
Mortgage rates are increasing, not just in Virginia but across the country. The 30-year fixed-rate mortgage has increased by over 3.5 percent since last year — from 3 percent to 6.5 percent. Most forecasts predict rates will continue to increase for the foreseeable future.
Virginia’s current average mortgage rate is over 6% for a 30-year fixed loan. As of this writing, the average rate is over 5.5% for a 15-year fixed mortgage and over 4.5% for an adjustable-rate mortgage (ARM).
Along with price increases, mortgage rates will influence the decisions of many buyers.
(Mortgage interest rates are somewhat volatile and subject to change by the day. Check with your mortgage lender for the most current rates for your area. If you don’t have one you trust, let us know. We can help!)
Virginia sees a significant housing inventory shortage. Virginia’s housing inventory has declined rapidly for several years, and the market has felt the impact.
In January, there were 12,203 active listings in the state. That is 26.8% less than at the end of January 2021 and 9.4% lower than December. But, sales have slowed down, and inventory levels could rise in the short term.
The housing market in general
As mentioned earlier, the housing market is hot right now. All indicators point to prices that will continue to rise. That said, that could indicate a good time to buy for some. If you buy soon, you could get in while prices are still rising. However, you will want to make sure to buy in an area where property value tends to stay strong.
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