Tuesday, July 14, 2015

Should You Wait Until Next Year to Buy a Home in Northern Virginia?

There are many questions for homebuyers in Northern Virginia this summer— one of which may cross your mind as you're browsing available properties. Is now really the right time? Should you wait until next year to buy a home instead?

While only you can know what's right for you financially, it's important to remember that there will be a cost associated with waiting to buy. And it will be hundreds of dollars higher than this year!

Let's take a $250,000 house in Northern Virginia, for instance. With mortgage rates currently around 4 percent, your principal and interest will come out near $1,100. However, you decide to wait until next year to make that same purchase. Home prices are projected to appreciate by 5 percent over the next year which means that home will soon cost nearly $263,000. Interest rates will be higher also, meaning your new mortgage payment will be $1,400 instead of that initial $1,100!

Depending on your financial situation, the difference could be as high as $300 per month! Over the course of a year, with a new mortgage rate of 5 percent, the annual extra cost will come out to $2,600 or more!

What does that mean for your wallet? Think of it this way:

  • It's your morning coffee ($2) every day and $10 spent for lunch
  • It's dinner out every Friday night ($50, 4 nights per month)
  • It's a new car with a monthly payment of $215-300 per month
  • It's your yearly family vacation ($2000)
  • It's a new deck or similar home renovation
If you don't have this much extra money in your budget to purchase a home next year, it may be wise to invest now! With my expertise in the Northern Virginia real estate market, I'm here to help you make smart home buying decisions and enjoy a stress-free process!



I happily serve the areas of Alexandria, Annandale, Arlington, Burke, Centreville, Chantilly, Clifton, Fairfax City, Falls Church, Great Falls, Herndon, Lake Ridge, McLean, Mount Vernon, Reston, Rosslyn, Springfield, Tyson’s Corner and Vienna. 

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