Over the last 24 months, many home buyers and sellers in Northern VA have been sitting the side line questioning their timing into the real estate market. In 2016 people were unsure what the presidential election would bring so many waited. Once our new president was elected, many continued to wait to see what the new administration had in store. Potential home sellers, who would also be home buyers, are still asking the question, buy a home in Northern VA now or wait?
I recently wrote that over the course of the last 12 months, home prices have appreciated by 7.0%. Over the same amount of time, interest rates have remained historically low which has allowed many buyers to enter the market.
As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home.
The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 4.7% over the next 12 months.
What Does This Mean as a Buyer?
If home prices appreciate by 4.7% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:
If buying a home in Northern VA is in your plan for 2018, doing it sooner rather than later will save you thousands of dollars over the life of your loan. I can sit with you over coffee for a free consultation to determine if now is the best time for you to buy a home, town home, or condo in Northern VA. I am an expert in all Fairfax County and Prince William to include Vienna, McLean, Reston, Oakton, Great Falls, Falls Church, Fairfax, Burke, Centreville, Chantilly and all Northern VA.