Why Buy Now

Purchasing a home is more than a financial investment ~ it’s a place to set down roots, a place to make memories, a place to make your own and a way to build generational wealth. The monthly mortgage payments builds equity in your home, unlike rental payments which goes to the landlord’s home equity.

With the current interest rates hovering around 7%, it means you’ll get (comparatively) less house for your money but that doesn’t necessarily mean you should wait for rates to fall. Once rates fall below 6%, the buyers who decided to sit on the sidelines strictly due to the higher interest rates will jump back into the housing market. This will no doubt create a lot more competition than we are experiencing now. No one knows when rates will move lower but the indicators seem to point to early 2024.

Questions to consider when thinking about purchasing a home:

1) Is your income stable?

2) What are your career prospects?

3) What are your long-term financial goals?

4) What is your desired lifestyle? Walkability of a neighborhood? More space such as a large yard? Do you work remote and don’t have a commute to worry about?

For buyers who are waiting for a “crash”, it’s unlikely and here’s why:

1) The ongoing lack of inventory in the DC metro area explains why many buyers still have less choice and face some competition for move-in-ready homes. The competition is nothing like it was when interest rates were at an all-time low but because of inventory numbers, it’s not a buyer’s market. The current supply-and-demand equation indicates there won’t be a crash. Why is inventory so low? Owners are reluctant to give up their low interest rate even if they want to downsize or upsize.

2) Builders have never fully ramped up production to pre-2007 levels. They pulled way back after the last crash.

3) Lending standards remain strict, unlike the days of easy mortgages in 2004-2006. The days of anyone getting a mortgage are gone since the last crash.

4) Foreclosures are currently low and nothing compared to numbers after the last crash. Homeowners have high credit scores, equity in their homes and the ability to sell their homes if needed.

If you’re ready to buy now and don’t want to wait for the market to become more competitive, reach out and let’s discuss your options. It takes a team to buy a home and I partner with several local lenders who can help you get a clear picture of your budget, the downpayment required and which programs might be available to you (think First Time Buyer). Lenders may also have creative ways to keep your monthly mortgage payments lower with buy-downs and other incentives.

Be ready to grab a good opportunity when you find it!