The cost of buying a home keeps creeping up. For those buyers in the DC housing market, there are legitimate reasons to worry:
- The cost of homes keeps getting more expensive.
Buyers are forced to increase how much they are willing to spend, or to adjust their expectations downward to match the current market’s offerings. For most buyers, increasing how much you can spend is not an option, so as the prices go up they see themselves losing purchasing power. This is especially pronounced in markets where multiple offers are quite common.
- There is an accompanying interest-rate creep.
Although the rates are rising slowly, with each additional rate hike the cost of borrowing money goes up.
What’s most alarming to homebuyers, especially for first-time buyers, is the combination of prices going up along with the increase in the cost of borrowing money. It’s this one-two punch that creates the fear of being priced out of the market. Many first-time homebuyers have told me this is their number one fear.
- Buying a home in this market may feel like a rushed decision.
It’s a long-term commitment that should be made at the appropriate time in one’s life! For those wondering if they should enter the market now or wait just a bit longer, it’s a tough decision because the consequences of waiting can be expensive. Make sure to weigh the pros and cons with the help of a real estate team.
The question buyers must answer is: “How do I balance the right time to buy, versus potentially being priced out of the market?”
There are several questions one can ask to help resolve this. Here are just a few:
– Is my salary likely to increase quickly or over a long period of time?
– Do I intend to stay in this area for at least 5 to 7 years?
– If I bought today, how much would my monthly cost increase over my current rent payment?
– How much more will it cost per month if I waited and both home prices and mortgage rates increased?
The Ron Sitrin Team has helped hundreds of people answer these questions.
We know how to get you an edge in the homebuying process and how to make sure your move counts! If you’d like to learn more about how our home buyer services and our Home Buyer’s Roadmap can help you, give Ron a call: 202-321-4677