If you’ve been waiting to buy your first Chevy Chase home, you shouldn’t wait much longer! There are several indications that home buying will become more expensive in the near future, even as home inventories improve. Here are some facts to consider!
#1: Home Prices Rising Faster Than Expected
A nationwide panel of 118 economists, real estate experts and market strategists project U.S. home values to increase an average of 4.6% by the end of 2013. This is a revised estimate based on the recent strength of the market; a few months ago, they estimated 2013 home values to grow by 3.0%.
Home price projections run even higher according to Bank of America and Morgan Stanley, who are estimating price increases between 7% and 8% during 2013. While there will be regional differences in home values, the Metro D.C. market is among the higher home price projections.
#2: Mortgage Interest Rates Rise With Improving Economy
Our long run of ultra-low mortgage interest rates will end during 2013, according to the Mortgage Bankers Association. They expect that 30-year, fixed-rate mortgages will climb from their current threshold of about 3.50%, to 3.75% in a few months. By this time next year, rates are expected to be over 4.0%.
While this isn’t huge, keep in mind that rates have already risen from the record lows of the recent past. Every uptick in rates means another dollar out of your pocket. For example, the monthly payment difference between a 3.50% interest rate and a 4.50% interest rate on a $200,000 mortgage, is $116.
#3: Monthly Rents Won’t Get Cheaper
If you choose to rent instead of buying a home, you won’t escape a higher cost of living. Residential rents in the U.S. generally average annual increases of 3.2%. In the past 12 months, rents have increased by an average of 4.5%. Strong home demand in the DC area has also kept upward pressure on local rents.
Chevy Chase Home Buying Help!
Markets change, but there is still plenty of opportunity for you to become a home owner! Start by obtaining the expert guidance of a Chevy Chase real estate professional! I will be with you from the home search, through negotiations, to closing!
Let me help you make the most of the opportunities we have in the Chevy Chase real estate market and the greater DC area! Contact me today for help with your home buying plans!
Melinda Estridge
The Estridge Group-Long & Foster Real Estate, Inc.
Check Out Our Website
See Homes for Sale in Chevy Chase
Contact Us
