We see dozens of marketing reports posted every day about total sales and sales prices in Northern Virginia. We know sales prices are down. Recently we have been able to report that the total number of sales have increased from 2008-2009, brought on by lower prices and lower interest rates. One set of numbers that you don't see reported often is how are the home purchases being financed?
Let's just say simply, FHA and VA rule!
A quick glance at a comparison between May 2008 and May 2009 shows just how significant the increase is.
|
MONTH |
May 2009 |
May 2008 |
|
|
Total Transactions |
1,803 |
1,724 |
|
|
LOAN TYPE |
|
|
|
|
Conventional |
860 |
1118 |
-27% |
|
FHA |
538 |
278 |
+93% |
|
VA |
174 |
95 |
+83% |
|
Cash |
169 |
0 |
|
|
Assumption |
51 |
44 |
+15.9% |
|
Other |
11 |
19 |
-42% |
There have been a number of concerns in the last few weeks with low FHA and VA appraisals scuttling contracts at the last minute. The new HVCC (Home Value Code of Conduct) which went into affected on May 1, 2009 has many Realtors® in a tizzy. At the moment there do seem to issues that need to be resolved. Personally I’ve had two appraisals with issues “The New Appraisal Process-Not to Worry Your Home is on a Toxic Waste Dump.”
Meanwhile buyers keep pressing forward and taking advantage of the buying opportunities the low 3.5% down payment an FHA loan provides and the even better ZERO down payment required for VA Loans. It will be interesting to see if the jump in FHA and VA loans will continue through the summer months.
If you are considering a move in Northern Virginia this summer give the Cindy Jones team a call at 703-346-2213. Let's talk about whether now is the right time for you to buy a new home. No hassle, no pressure, just straight talk about what makes sense for you.
Cindy
FHA and VA are great vehicles for a buyer; do you have rural home loans in your area as well?
Tom-they are available further out in VA. Since I primarily work close to the city I don't have any clients using the USDA loan program.