The Future Perfect Storm Looming For Home Buyers
Three Things The Market Is Doing To Prospective Home Buyers Who Wait To Buy
If You Are Postponing Your Home Purchase Until 2014 You Might Want To Change Your Mind
The perfect storm is looming for home buyer who want to wait until 2014 to buy a home in Woodbridge VA.
1. We have a shortage of homes for sale in Woodbridge VA, and that is slowly driving prices higher with each passing month. June 2013 home prices were 5% higher than June of 2012. Home prices are back to 2002 levels. We're not back up to peak prices we saw in 2005/2006, but the market is headed that direction.
2. Interest rates are rising, and as rates rise, that eats into your buying power. Two months ago, home mortgage interest rates were roughly 2.5%. Rates have risen to 4%, and loan experts predict 5% rates by the end of the year.
For example, a $400,000 home at 2.5% would have cost you $1,580 per month. That same home at 5% would cost $2,147 per month; $577 higher than at 2.5%. That eats into your buying power, and if $400,000 was your top rate, your buying power just went down by more than $50,000. Financial experts predict 6% home mortgage rates by the end of 2013.
3. Your buying power cap has been reduced by Fannie Mae and Freddie Mac, across the board by 7%.
Here's an example of what I mean; Pretend for a moment that you know you are getting a promotion and a significant pay raise shorly after you buy your home. In cases like that, lenders are allowed to approve loans up to 50% of your total income going toward your house payment and all of your other debts combined. The new cap will be 43% of your total debt, once again eating into your buying power. Now is the time to sit down with your mortgage banker and nail down your buying power.
I don't mean to scare you.
These are facts you need to know if you are considering postponing your purchase, even though you are in a position to make your move now.
You can find out more about your buying power, and how your present buying power can help you get your dream home before the perfect storm hits at the end of 2013.
I'm just a phone call away: 703-677-1120.
Text me or call. 703-677-1120.
You can also email me at the address on the right side of this page.
I look forward to talking with you.
Call or text Erick Blackwelder right now for help finding a home, or help selling your house.
Don't worry... Erick doesn't bite, and you won't get a sales pitch. Text or call Erick now at 703-677-1120 for a FREE consultation.
CLICK HERE NOW to search the Multiple Listing Service (MLS) for homes for sale in and around Woodbridge, Lorton, and Mount Vernon.
Exit Realty Associates
8998C Lorton Station Blvd
Lorton, VA 22079
Equal Housing Opportunity
Click the link above to email a question to me or call me now at 703-677-1120.
Equal Housing opportunity.