If you’re thinking of waiting for the spring to look at buying your home then you could be putting yourself at risk at paying more for that dream home.
Right now we’re in a low inventory situation, but there are still new homes hitting the market every week and the best ones that do are going quickly for good reason.
Loudoun County has been experiencing a 4.6% increase in home sales price over the past year. Let’s take that rate and put it against a simple scenario.
If we take a look at that increase against the county’s median sold price of $455,000 that’s roughly a ten thousand dollar rise in just six months. With 30 year mortgage rates around 3.75%, historically an incredibly good rate, you could be paying $37 more a month for the same home in six months. That’s $444 more a year or $13,320 more over 30 years.
But wait, there’s more. Since home prices aren’t the only variable here, what if those low mortgage rates start to climb? Taking that median home, adding six months of market increase to $465,000, and sliding the mortgage rate just a quarter point up to 4.0% you’d now be paying $1,776/mo. That’s $90 more a month, $1,080 more a year, and $32,400 more over the 30 year life of the loan.
And those numbers are just what you’re up against with a median home price. If you’re looking for something around $750,000 then that could climb to $765,000 following that market rise. Bump up the mortgage rates just a quarter of a point on top of that and you’re paying an extra $51,480 over the life of the loan for the same home with just a few slight shifts in the market.
Take a look at what happened in the average listing prices for Loudoun County last winter in to the spring:
Ready to lock in your home value before the market climbs or mortgage rates move up again? Buyers’ agents work for you and your best interests while costing you nothing out of pocket. Put me to work for you today.