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Buying a house that didn't experience as much price increases in order to avoid price drops as rates go up?

Warning: probably too much FUD.

With all the news about interest rates going up in the coming months, I've started worrying about what that could mean for our current house hunt. In our market, we're looking for houses around 550-600k. But what if we put 20% down on a house, and then home prices drop by 20% after close? I wouldn't exactly be underwater, but it would be as if my down payment disappeared!

It got me wondering if I could somehow avoid the future price drops by finding houses that are already low price due to out of date interiors or something. Like if I buy a <500k home I'd have more spare money for renovations and maybe any price fluctuations post-interest hike won't hurt as bad? I suppose the hole in that line of thinking would be "just because the house is old doesn't mean it didn't also ride the wave of home prices", so maybe we would signing up for a remodel home for without even dodging my original issue?

Tell me I'm dumb or anything that makes me feel better.

Note: We do feel a bit of pressure to move sooner rather than later due to an uptick of shootings in the area that are literally putting bullets in our windows and living room. Much as I'd like to wait and see, I don't think my husband would enjoy the risk of staying.

Edit: Looking in the DMV area, usually in VA

submitted by /u/Oangusa
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/sdz9wu/buying_a_house_that_didnt_experience_as_much/
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