Don’t wait too long to buy a house. It may cost you more than money.

Don’t wait too long to buy a house. It may cost you more than money.

One of the most common questions Realtors deal with is related to “how much house” a buyer can afford. The first place to start when you want to buy a house, is the lender’s office. A lender is a great resource in the home buying process because the lender can determine what buying power a home buyer is capable of. Then, with that information in hand, a buyer knows what price he/she should be shopping in. It would be terribly frustrating to shop for a $400000 house if a buyer’s buying power is $232000.

Don’t wait too long to buy a house: The cost of waiting.

There is second issue buyers should also consider when they start the process to buy a house. That is time and interest. Time and interest rates can work for you, or they can work against you. A buyer may start the process qualified to buy a $232000 house at 4.5%Don't wait too long to buy a house. You may find that you can't afford what you could before., but what happens if he lingers for 6 months and interest rates inch up over that time? Let’s say rates climb to 6%. That $232000 house will now be out of his buying range. Now, he can only afford to buy a $196147 priced home, but his house payment will be the same as the $232000 house.

Don’t wait too long to buy a house: Even small changes will hurt your purchase.

Even if the rate only went up 1% to 5.5%, the buyer’s buying power slips to $207119. No one wants to rush into buying a house, but being too causal in home buying process may cost you. In this scenario, the buyer lost nearly $25000 in buying power. If it went to 6%, he lost $35853 in buying power. It’s very likely that the $36K loss in buying power is not going to produce the house he envisioned when he started the search.

Don’t wait too long to buy a house: Time really is money. Your money.

Time really is money when the market is showing increases in housing prices and interest rates. Every increment up means less buying power. A buyer needs to be focused on finding the right house within his/her price range within a reasonable time. If not, he/she might be settling for less house at the same monthly costs.

You may also enjoy reading:

Buying a home? What is the process?

You can’t buy the first house you look at, can you?

Advertisements

Berkeley-Jefferson County, WV Real Estate Market Review – 2017

Berkeley-Jefferson County, WV Real Estate Market Review – 2017

The BerkeleyJefferson County, WV real estate market had a great 2017. Both markets saw increased numbers at all levels, and they outperformed their immediate southern neighbors of Winchester City, Frederick County, and Clarke County, VA by 31%.

Berkeley-Jefferson County, WV Real Estate Market Review: Positive Numbers

The Berkeley-Jefferson County, WV real estate market increased sales 7% over the same period in 2016. The markets have grown 19% over the past five years. Property values have also increased 4% year to year and 18% over the past five years.

More bang for the buck

The 2017 market saw an average sales price of $209,988 for a single family home with 3 bedrooms and 2.5 baths. Just across the border in Virginia, that same house would have cost a buyer $277,755.

The Berkeley-Jefferson County, WV real estate markets are geographically positioned Berkeley-Jefferson County, WV Real Estate Market Review - 2017to give commuters into the D.C. – Northern Virginia area more home for the money and an equal or better commute to work. The Amtrak Caperton Station in Martinsburg, WV adds value to living in the area.

Home values have increased steadily for the past five years. The 2016 average sales price was $201,341, with 2015 being $192,578, and 2014 and 2013 at $190,586 and $173,226 respectively. That 2013-2017 change in sales price is 19%. The steady increase in home values shows a market that has not only healed from the 2008 recession, but it one that is thriving.

Berkeley-Jefferson County, WV Real Estate Market Review: A Critical Indicator

One of the more critical indicators of market health is the volume of distressed property sales. This an area where the numbers show the biggest improvement. The number of distressed property sales in 2013 was 29% of the market.

Berkeley-Jefferson County, WV Real Estate Market Review - 2017Distressed properties are made up of short sales and foreclosures. Foreclosures dominated the market as the recession of 2008 became the dominate factor in home sales. By 2010, short sales entered the market in volume and created a second wave of bad news for local residents. The change from 2013 to 2017 has been dramatic. Current distressed property sales are down 24% since 2013. The local market has settled into a pre-recession norm of about 5.5% across both markets.

Another positive indicator of market health is days on the market. The days on the market have not changed a single digit in 5 years. Days on the market were 76 in 2017 and they were also 76 in 2013. The middles years drifted back and forth between 93 DOM in 2015 to 89 in 2016, but those changes are small. As long as inventory doesn’t become a challenge for the local market, the Berkeley-Jefferson County, WV real estate markets are set for a banner year in 2018.

When you’re ready to sell or buy a home in the Berkeley-Jefferson County, WV real estate market, give Cornerstone Business Group, Inc., a call. We are your local real estate sales pros.