Whoopie! It feels like Spring in January here in the frigid D.C. area. I have two clients I am working with that may decide to rent hoping that they can better afford a home in a couple of years. Say What!
I try to point out that interest rates are likely to be significantly higher in two years and it looks like the same for home prices as well. Another near double digit increase in this area and you are looking at serious unaffordability if, and more likely when, interest rates go up. Although, across the board metro increases were only 3.5% (including a few areas that were down in this massive region), you are still looking at a $17,500 increase over the past year ($500K house).
The largest increases were in the District, Arlington, and Alexandria, followed closely by Montgomery, Fairfax, Loudon and Prince William. If you are looking for a home closer in, now is the time to get serious about buying.
Source article: http://www.washingtonpost.com/wp-dyn/content/article/2011/01/25/AR2011012502271.html?hpid=moreheadlines
Another upbest article on Hiring plans outstripping layoffs:
http://www.washingtonpost.com/wp-dyn/content/article/2011/01/24/AR2011012401331.html?tid=bizbanner
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