if it were to your advantage, would you move

If it were to your advantage, would you move?

Buy low, sell high is a much-repeated investment strategy. Buyers who purchased during the 2010-2012 financial crisis are about to see some considerable profits.

America’s current median home price is now $295,300 which is up from $155,600 in February 2012. The results are close to an 8 percent annual increase. Homeowners have earned median equity of $140,000 during this same period.

Demand is high and inventory is in short supply and that caused prices to increase. Conditions that are attributing to the low number of homes on the market are record-low mortgage rates and housing starts that have not recovered since the Great Recession. Also, we have stay-at-home orders that have pushed many people to realize that their home is not adequate for their needs and has prompted them into selling and rebuying which added to the demand for homes.

After the pandemic passes, experts believe that a significant portion of the workforce will continue to work virtually from home and further the motivation or need for a larger home into the long term.

Right now, the median days on the market (DOM) is 24. This is a direct correlation to the low inventory and stiffer competition. Homes listed for sale are getting an average of three offers with a few closing with a bidding war. Sellers have the advantage here because they will not only realize a higher sales price, but it will accelerate their move into another home.

The pandemic has devastated many businesses like hospitality, but real estate has boomed. Sellers are gaining a great deal of confidence since seven out of ten real estate contracts are closing on-time.

Another benefit is that taxpayers can exclude up to $500,000 of qualified gains if they are married and up to $250,000 if they are single. Some homeowners are taking advantage of the profit gained from their sale while at the top of the market, turning part of their equity into investments and then purchasing another home with a higher loan-to-value mortgage during this historically low mortgage rate era.

If you’re curious to see if this might work for you, contact me at (703) 303-4010 to find out what your home is worth now and what homes are available that may fit your lifestyle better.  Download our Sellers Guide.

I can provide Insider Information on Fairfax VA homes for sale. Get you a FREE Market Snapshot Report of Your Northern Virginia Home’s Value, or  Search All Northern Virginia Homes For Sale. Put that data you need at the tips of your fingers!

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