Over the past month, I’ve had a couple of clients decide that they were “just going to rent” for a year, and resume their home search next year, in hopes that the overall inventory will improve. While I absolutely respect their decision, it’s unfortunate that when they do decide to buy again, it will cost them more. Or they may not be able to afford the same kind/size of home they originally wanted.
In a recent article, Freddie Mac predicted that although they expect interest rates to remain relatively stable over the next six months, they do anticipate rates to rise to around 5% within a year. In addition, home prices are expected to appreciate an average of 4% for the nation (however, the Puget Sound region often sees higher appreciation than the rest of the country). Below is a table from the Keeping Current Matters blog illustrating how these two factors will impact the purchase of a new home a year from now:
As you can see, waiting for a year to buy a new home could significantly impact your monthly payment. Inventory has actually slightly improved a bit over the last couple of months, and interest rates remain steady. If you are considering making a move, now is a great time. Contact me to get started!