153 days ago, we sold a
townhouse in Kingstowne (Alexandria Fairfax County) for $610,000.
![🏡](https://static.xx.fbcdn.net/images/emoji.php/v9/td0/1.5/16/1f3e1.png)
5 days ago, a home four
houses down from that home sold with the same floorplan and finishes for $672,500.
![🏠](https://static.xx.fbcdn.net/images/emoji.php/v9/t4f/1.5/16/1f3e0.png)
In 148 days, these homes have appreciated by $62,500
.
![📈](https://static.xx.fbcdn.net/images/emoji.php/v9/t5a/1.5/16/1f4c8.png)
Here’s the kicker. Interest rates were 3.10% on November 18, 2021, and 4.72%
on April 7, 2022.
![⬆️](https://static.xx.fbcdn.net/images/emoji.php/v9/t26/1.5/16/2b06.png)
The difference in monthly payment is shocking given the amount of time passed.
$2,605/month* – $610,000 purchase price
November 2021
![📆](https://static.xx.fbcdn.net/images/emoji.php/v9/t58/1.5/16/1f4c6.png)
$3,496/month* – $672,500 purchase price
April 2022
![📆](https://static.xx.fbcdn.net/images/emoji.php/v9/t58/1.5/16/1f4c6.png)
—————-
$891/month increase in mortgage payment
Some people wonder why anyone would buy a home right now, given the rapid increase in prices and climbing interest rates?
Like I explained to my client today, who is sitting on a lot of cash
, inflation is eating away at your buying power. Holding off on purchasing today assumes that you can accurately predict
when inflation will end or how long inflation will last.
![💰](https://static.xx.fbcdn.net/images/emoji.php/v9/tb3/1.5/16/1f4b0.png)
![🔮](https://static.xx.fbcdn.net/images/emoji.php/v9/td9/1.5/16/1f52e.png)
In other words, there’s a cost associated with waiting or pulling the trigger.
Today’s homebuyers
are caught between a rock
and a hard place
as they watch the asset they want to purchase increase in price every day.
![👨👩👦👦](https://static.xx.fbcdn.net/images/emoji.php/v9/t83/1.5/16/1f468_200d_1f469_200d_1f466_200d_1f466.png)
![🪨](https://static.xx.fbcdn.net/images/emoji.php/v9/t89/1.5/16/1faa8.png)
![💎](https://static.xx.fbcdn.net/images/emoji.php/v9/t52/1.5/16/1f48e.png)
Onward,
AW
* – Monthly mortgage payment calculation does not include taxes, insurance, or HOA dues.