Home prices have hit record highs in many parts of Virginia, and many homebuyers face stiff competition and significant price escalation. It is easy for a homebuyer to get caught up in the “FOMO” (fear of missing out) and wind up in a bidding war they did not expect. Homebuyers should be cautioned about pushing the limits of what they can afford, or conceding on inspections or appraisals, which could put them at financial risk down the road.
But even in this frenzied market, buying a home to live in for five or more years still will typically be a positive financial move for individuals and families. While stories of homes selling for hundreds of thousands – or even a million dollars – over asking price will continue to make headlines, most price appreciation reflects the strong underlying fundamentals of the market.