Several news items and current events have occurred in the past couple days that directly impact the real estate market here in Loudoun County. More specifically, the environment for home purchasers has gotten better due to the fact that mortgage rates are in a free fall and the monthly payments for future home buyers has gone done considerably in the past 2 months.
The rate for a 30-year fixed mortgage was around the 6.4% at the beginning of the month and yesterday they dropped below 6%. This translate into more house for the money or less money for the same house.
Second, the unemployment rate continues to go up. And you might think this is a bad thing but for the lucky few that are already in this area, this bodes well for you. That is because as more jobs are lost throughout the country, the incoming Democratic government will create government jobs to offset the losses elsewhere in the nation. And that will require more government employees, more government contractors and more government agencies, the majority of which will be located here in the Washington Metro area.
I am currently working with a gentleman that is employed by a company that sells both to private business and to the government. He works in the government sales division and reports year over year revenue growth of 70% during 2008. This will continue at many companies in this area.
Third, the question as to who will be in the White House has been answered. The economic advisors have been chosen and a lot of the uncertainty that hung over the country just a few weeks ago has been eliminated.
Job losses a good thing? With all due respect I think you are stretching things a bit too thin in an effort to put a positive spin on current conditions.
Yes, there are some companies in this area that will benefit from the new administration. However, there are many large companies in this area that are in the process of (or are getting ready to) make serious cuts in their local workforce. There is also very little doubt that the incoming administration is going make significant cuts in the defense contracting sector. That sector employs a very large portion of the population in the Northern Virginia area. The majority of jobs that the incoming administration will ATTEMPT to create/preserve will fall in areas well outside of Northern Virginia, and most of those jobs will not pay nearly enough for someone to buy a house in the Loudoun County market (although in all fairness the rental sector could see some benefit). The incoming administration's focus is to create/ preserve jobs in hard hit areas such as Detroit, not in a relatively 'wealthy' county such as Loudoun.
Posted by: Realistic | November 26, 2008 at 10:12 AM
I've found that the rates quoted on BankRate.com are overly optimistic. Case in point: My wife and I purchased our current house six months ago, with 33% and credit scores in the upper 700s. None of the reputable lenders would wuote us anything near the rates we were seeing on BankRate.com. In fact, I just punched in our loan info into BankRate and it came back with two lenders: Quicken Loans at 6.4% and Bank of America at 7.4%. Where are the 5.75% rates? Probably from companies that are fly-by-night or say two days before closing that they can't give you the originally quoted rate.
You're better off getting a more realistic rate quote from Mason Dixon or one of the other reputable lenders.
Posted by: Radar | November 28, 2008 at 10:14 AM
Realistic, The size of the government and the contractors that cater directly to the government located in the Washington Metro area dwarfs the size of all other industries let alone a single company. As as the US employment and economy continue to contract the government will expand to fill in that void. They have done it during every economic contraction since the Depression. Those are facts. Ignore them at your discretion.
Radar, I just talked to my loan officer at Wells Fargo and he has a loan right now for buyers under $417,000 at 5.5% and no points. For people just calling off the street or applying online, lenders will not give out their best rates or loan packages. They will advertise it but you won't get it. You gotta know someone and as an agent that is constantly referring business, they call me directly with the deals.
Posted by: Tony Arko | November 28, 2008 at 10:25 AM
Tony,
Great, can I refi at that rate?
Posted by: Radar | November 28, 2008 at 02:49 PM
Never mind, we're refinancing at 5.125%, no points, no closing costs. Saving us $250/mo.
Posted by: Radar | December 16, 2008 at 10:39 AM
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