153 days ago, we sold a townhouse in Kingstowne (Alexandria Fairfax County) for $610,000.
5 days ago, a home four houses down from that home sold with the same floorplan and finishes for $672,500.
In 148 days, these homes have appreciated by $62,500 .
Here’s the kicker. Interest rates were 3.10% on November 18, 2021, and 4.72% on April 7, 2022.
The difference in monthly payment is shocking given the amount of time passed.
$2,605/month* – $610,000 purchase price November 2021
$3,496/month* – $672,500 purchase price April 2022
$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.
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.
* – Monthly mortgage payment calculation does not include taxes, insurance, or HOA dues.