With the busy summer months now behind us, and the slow seasonal transitional downtime during the month of August, the real estate market is now revving its engines for the fall. A little real estate secret — fall is one of the best times to take that next step in purchasing your dream home. Recognized as the second busiest season of the year, a significant portion of summer listings still on the market may see significant price reductions and there is a new crop of listings hitting the market every week.
Here are four more reasons why you should not wait any longer and purchase your new home this fall.
Interest Rates on the Rise. Mortgage interest rates just hit their highest point since 2010. As interest rates rise, your purchasing power can decrease. One of my recent clients was waiting for a raise at work assuming they could afford more. Months later, interest rates went up and the raise did not offset the higher interest rate. There is a real possibility the cost of borrowing will rise, so now is the perfect time to enter the real estate market.
D.C. Housing Market Keeps Rising. The D.C. housing market has not slowed down. An average one-bedroom rental is roughly $1,800/month. A recent client of mine actually saved $150 a month when they decided to purchase a similar property they were renting. That is $1,800/year they are saving on their housing payment. Buying now means you are gaining equity in the property and not your landlord.
Tax Incentives. April 15 is the day many Americans dread. As a homeowner though, you get to deduct your property tax and mortgage interest from your taxes. If you keep renting though, your landlord gets to take advantage of the tax benefits.
New Savings Account. When you purchase your new home, it’s basically setting up a new savings account for your future. Part of your mortgage goes toward the principal of the loan. The principal is going toward the equity of the home. When you go to sell it, you get that money from your equity. It’s a built-in savings mechanism for your future.
Ready to start? Contact me and we can discuss the home buying process.
Teddy Rojanadit is a Realtor with Bediz Group, LLC at Keller Williams Capital Properties, winner of the Washington Blade’s Best Real Estate Group in 2015 and 2017 and currently nominated for 2018. He can be reached at 202-664-3736 or firstname.lastname@example.org.