Our top five reasons to buy now!
Affordability: Loan rates have been locked in by buyers as low as 4% in the past month. Interest rates have climbed from around 3.5% last year to an average of 4.25% right now, and are predicted to continue to slowly climb.
It’s a better investment than renting: The average rent per one bedroom is $1,850 in a neighborhood like Adams Morgan. The average sales price in that neighborhood is $578,774.00 With a 4% interest rate on a conventional loan and putting 20% down, the monthly mortgage payment is $2,210.41. The year-over-year increase in sales price is 20% in that neighborhood! If sales continue on that trend the same home could be sold for $694,528.80 next year.
Long-term growth potential: The average sales price so far this year is $474,950 in the District. The reason to purchase now is the rate at which the value of homes is increasing. A sale-to-list ratio of 99% indicates homes are being sold for their listing price. In a popular neighborhood like Dupont Circle you are seeing a 4.2% week-over-week rise in listing price. The greater investments are being made in neighborhoods like Michigan Park with a 70.8% year-over-year increase in sales price, Cleveland Park with a 51.5% year-over-year increase, and Petworth with a 43.3% increase.
Fixer uppers: There are a number of homes in the city and in the ‘up-and-coming’ neighborhoods that are in livable condition, but could use some TLC. These homes are not worth the investment to developers, but they are great buys for someone who can put a a little hard work into them. They are priced for what they are at the time of sale or the idea of what they can become. As a buyer be prepared to pay closer to what they will become because there is a lot of competition in the market.
Owning a home is an accomplishment: The purchase of a home can be the single largest purchase in someone’s life. It can be stressful and overwhelming, but to own your own home offers a sense of accomplishment and security. As the owner of a home there is no decision that must be passed by a management company, there is more control over your environment, you can upgrade as you see fit, and you can commit to the community you have become a part of.
In summary, owning a home is still more affordable than it has been in past years and rates will not stay this low forever. Renting in the city is expensive and you will never get a return on that money. Owning a home is not much more expensive than renting and in some locations it is less expensive. The sales prices in DC have been on the rise for some time and even in more stable neighborhoods the prices have been rising. There are good and great investments available depending on where you want to live and the amount of work you are interesting in doing. Lastly, owning a home offers independence, stability, and pride. DC offers a lot to its citizens and it is a great time to get rooted here.
DC Real Estate Agent