This week’s Q&A column is sponsored and written by Hope Peele of The Peele Group and McEnearney Associates Realtors®, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact The Peele Group at 703-244-6115 or email [email protected]. You may also submit your questions to McEnearney Associates via email for response in future columns.
Question: How have the interest rate hikes affected the real estate market for buyers?
Question: How was the real estate market in the City of Alexandria for the first half of 2022?
Answer: At the end of June, we like to take an in-depth look at contract activity in the City of Alexandria for the first half of the year compared to the same months of the previous year. To put contract activity into context for the first half of 2022, we will first look at month-end inventory and the number of new listings coming on the market year-to-date.
Question: How can my mortgage lender help me buy my next house before selling my current one?
Answer: You may have heard the real estate market is starting to slow down. Recent sales data seem to support that notion. You should keep in mind, however, that slowing down does not mean a slow market. It means the frenetic pace at which residential real estate has been sold over the past several years is a little less frenetic now.
Question: In this changing market, is becoming a Realtor still a good idea?
Answer: For many years, and even more so in the last five years, real estate nationwide has been moving at a breakneck pace. Low mortgage rates coupled with low home inventory plus four main generations of buyers (Baby Boomers, Gen X, Millennials, and Gen Z) has meant a lot of people scrambling for their own piece of the American Dream of homeownership. (Source: The Motley Fool)
Question: Okay, since people have asked… let’s tell them what it is really like when I am your real estate agent. Why choose a Realtor?
Answer: We start with the premise that we are the only sane people in an insane world. Of course, you and I are smart, creative and cute and, when it comes to buying or selling residences, together we are BRILLIANT!
Question: When do I have to fix this?
Answer: Many new homeowners are making the transition from having landlords in charge of repairs, to being responsible for them all by themselves. It is important that you know not only what to fix, but when. Not everyone can afford to fix everything all at once. If there are a number of repairs needed on a home when you move in — or after five years of living there — it is important to know what to prioritize.
Question: What sort of previous experience do I need to become a real estate agent?
Answer: I knew I wanted to be in real estate when I was in college, and a young agent was extremely uncommon. For that reason, I went into the hotel business, was a meeting planner, and sold promotional products before I started my fourth career.
While I am not an economist, as a Realtor, part of my job is to stay on top of understanding our economy, what interest rates are doing, and how they are affecting our market.
We have been on a wild ride with interest rates historically low for the past couple of years, driving buyer demand and resulting in a shortage of homes on the market. Sellers have been basking in escalated sales prices, earning deep pocket returns on their investments.
Question: What’s a silly question when it comes to real estate?
Answer: “I have a silly question” is something that I hear far too frequently and is usually followed by a question that I’ve been asked before and isn’t silly at all. Frankly, in my opinion, there are no silly questions.
Question: I feel like I could live in a few neighborhoods. How do I narrow it down?
Answer: We’re fortunate that we live in an area with three jurisdictions to pick from! But it can be overwhelming when you can envision yourself in a lot of different areas. There are lots of things to consider when picking your next home — not only the home itself, but where that home lies.
Question: How can my mortgage lender help my offer win a bidding contest?
Answer: Anyone who has been thinking about purchasing a home within the past year has heard over and over how competitive the marketplace is. The severe lack of residential inventory has affected all price points and all types of properties. Rising interest rates may cause some purchasers to exit the process, but the need for housing will have a greater impact on the continued supply/demand equation.
