Rising Interest Rates-Should you Wait or Buy NOW a Home?

By
Real Estate Agent with Samson Properties VA0225077251

In 2018 Northern Virginia real estate market has been very similar to other parts of the country. We had a tight inventory and a high demand market. Since the beginning of the year as the numbers reflected the rise in the sales price along with a high volume of sale over the numbers from last year sales.

With the current dramatic rise in the interest rates, many home buyers are confused about what is the best decision they can make for their biggest financial investment. 

Here is a simple break down:

Scenario 1: If interested rises but home prices remain the same


 

From the above snapshot, the difference between the current interest rate and future is about $140 per month which adds up to $1680 per year.

 

Scenario 2: If interested rises but home prices decrease by 5%



In the second scenario if we do have a sluggish housing market and home prices drop by historic 5% you waiting out or buying a home now won't make a difference. 

If the 1st scenario where the interest rises but the housing price remains the same some homebuyers may be forced to hold off financially. 

Verdict: To BUY NOW or WAIT to buy a home in the future?

Psychologically many of the home buyers get on the fence when the market pulls back and/or the interest rate rises. As a local realtor, I called it a reactive decision. Real estate has always been an emotional purchase alike stock which had a double-digit dropped in the past week. Apart from an emotional real estate is a long-term (ya Ritu you said it over and over) investment. You will pay for rent or mortgage.

My professional and personal advise to Fairfax and Loudoun County home buyers would be to take advantage of the housing market.

Sellers who are in the fall and winter real estate market are the most motivated home sellers in the Northern Virginia area. Negotiate the contingencies, leverage the home inspection items you want sellers to repair for you and lastly ask for closing cost help (seller subsidy) to buy down the rate or pay your closing cost. None of this was an option when the market was HOT!
 

 

Now, if you are ready to make your dream of home ownership come true let's talk..Call Ritu Desai top real estate agent in Fairfax & Loudoun County with Samson Properties at 703-625-4949 or email me with your question at Info@eNOVAhomes.com

 

 

Posted by

 
                             
Associate Broker
MRP, ABR, ePRO

NVAR, Life Time Top Producer
NVAR,Multiple Million Dollar Sales Club Member
Samson Properties
Cell - 703-625-4949
Email - info@eNOVAHomes.com
Web: www.eNOVAHOMES.com
 
Residential real estate agent serving Northern Virginia in Fairfax & Loudoun county over a decade and almost $100+M in sales volume experience. 


 
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Rainmaker
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Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

Good morning, Ritu Desai the time to buy is whenever you're ready.... when interest rates inch up, the prices inch downward... it's the payment that's important to get into that home....one can always refinance in the future....

Oct 12, 2018 06:38 AM #1
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Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Agree that the time to buy is when one is ready. It's ridiculous to let fears of price increases or interest rate increases to rush a move, or prevent a move. With that said, I think it's always a great time to buy, or sell, when one is ready, 

Oct 13, 2018 06:37 AM #2
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Rainmaker
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Ritu Desai

Virginia Realtor-Fairfax/Loudoun/PW-703-625-4949
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