So far, 2016 has been a great real estate year here in the Fredericksburg Region. In the Mid-Atlantic, our sold dollar volume is up 11.42 percent, our units sold are up 10.82 percent, and our days on market have decreased by 1.35 percent, down to 73 days.
Houses that are priced right, are in good locations, and show well are definitely selling. Properties that are priced in the $250,000 and under price range are quickly being shown to multiple parties, and are seeing competitive and even multiple offers, in some instances.
Interest rates have been one of the main forces driving our real estate market this year. Last year many professionals in the financial sector warned of climbing rates. Much to our surprise this year, we’ve seen record lows and, in turn, wonderful opportunities for both current purchasers and homeowners who wanted to re-finance.
With that being said, presidential election years always effect our market. Not only will we likely see a slight slowdown in buyer traffic starting in September until the election, we may see those rates fluctuate more than they have in the past few months.
One of the most important factors for a buyer to consider now is their buying power. If a purchaser is looking at a $215,000 home, and if rates go from 3.625 percent to 4.25 percent, for example (this is estimated with a 5 percent down payment), they would need to buy a $200,000 home to keep the same monthly payment.
If they are looking to buy a $400,000 home and want their payment to stay the same, they would have to decrease their sales price by $32,000 to $368,000.
Those are huge buying power decreases. Both decreases in sales prices take away certain amenities, potential locations, and upgrades within their respective price groups.
What does this mean for you? It means if you’re thinking about buying or selling a home, upsizing or downsizing, NOW is a great time.
Be mindful that waiting too long can have a financial impact on your next home, when rates do increase. There are many zero down programs in our area, grant programs, and standard, conventional programs. Take advantage of this window of opportunity, and don’t forgo those extra dinners out or family activities by waiting too long and spending more than you want on a new home.
For more information, call the Amy Cherry Taylor & Associates Customer Service Line 9 a.m. – 3 p.m. Monday through Friday at 540-632-2824, or reach Amy directly at 703-577-0135.
More
Simple Steps for Preparing Your Home to Sell
How Interest Rates Impact Your Home Buying Power
The Benefits to Buying a Home and Who You Should Call to Help
