I hope everyone has a great Monday. I wanted to update you on the DMV real estate market and attempt to shed some light on what is going on there.
There is no doubt that the real estate market is changing from “Boiling Hot” to just “Hot” or “Warm.” Interest rates on 30-year fixed mortgages are currently at 5.5 percent. The interest rates we have now are higher than the 3.25% we had at the beginning of the year, but they are lower than they were a month ago.
HOME SELLERS - If you had planned to downsize, move, or retire, think about changing your plans now to secure your equity while home values are still high. If the market continues to go in the same direction as it has over the past three to four months, property prices could decline significantly. Some of my clients have sold, withdraw their gains, and temporarily rent a few years before retiring or moving.
HOME BUYERS’ - Everyone wants to avoid paying too much, and there are valid worries about making a purchase at the height of a market. On the other hand, long-term real estate values always increase. There is a significant probability that if you are waiting for home values to go down, interest rates may increase, which might make homes much less affordable than they now are. I would advise you to put off buying a property until you are more “long term” in your mindset because home values will always increase in the long run. I consider the long term to be at least five years, ideally ten or more. Besides to the obvious advantages of home ownership, such as establishing roots in the neighborhood, building equity, saving money on taxes, etc., you should be able to weather a brief downturn in the market. Once more, long-term real estate is always increasing in value.
DO YOU HAVE ANY SPECIFIC REAL ESTATE QUESTIONS??
If so, hit me up by email or text at 571.685.9831. Also, feel free to send this to a friend who might be interested in it. I would love the opportunity to help people you know.
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