As we watch the news or see posts about the economy, stats on home sales, and prices, you can’t help but wonder if this is ACTUALLY a good time to be doing something in real estate? Well, as they say, knowledge is king, so I’ll drop a few knowledge pieces here for you to digest, and then you can decide what is best for you and your situation.
Percents vs. Dollars
If I told you that a small number had more to do with people’s ability to move than a big number, would you believe me? Well, if we are talking interest rates versus purchase price, that’s precisely what it means.
But…What Goes Up Will Come Back Down, Right? Right???
Not so much. I hate to be the one to break this to you, but as the market prices increase to hit inevitable highs, they will not, at any point, return to previous points – regardless of rates or events. Even in the event of a Buyer’s Market, where you see a price reduction and more concessions in transactions, the overall price reductions won’t equate to the increases we have seen in the last couple of years. So if you are holding out for a $250,000 4 bedroom home in King County again, it is really, really unlikely that you are going to see that again in the main corridors areas or anytime soon. But once the interest rate begins to rise, what you can afford WILL be affected, and not to the good.
So if you have been waiting to use your equity to move into a new home or buy your first place, give us a call today, so we can discuss your options and how you can make the best choices in this market! Our team and our resources with lenders in the area are here to help you take the next step.