- Isa Summers
5 Things to Keep in Mind about the Current Housing Market
Things to consider to stay positive if you're in the Raleigh real estate market
If you are currently looking for a new home, you are probably aware of the turbulent state of the housing market. Real estate prices have steadily increased over the last decade, and the recent home-buying frenzy introduced by the pandemic in 2020 is sure to prevent this trend from changing anytime soon. With this being said, there are still many reasons and incentives for you to purchase a home now.
Mortgage Rates are at an All-Time Low
One of the most important parts of the home-buying process is selecting a mortgage plan that works for you. This is an important and sometimes tedious process. The good news is that mortgage rates are at an all-time low. Low mortgage rates minimize the risk you incur as a homeowner and allow you to invest your money in other things. This makes the home-buying process for young professionals and first-time homebuyers a lot more attractive. It’s important to act fast, because those low mortgage rates are not here to stay and have been increasing so far in the first quarter of 2022. According to our latest insight from friends in the lending industry, the average rate for a conventional home loan is now about 4.25%.
Homeowners are Willing to Sell
Prices are high, making it the perfect time for current homeowners to sell their homes. This means that many homeowners that are considering moving out of their home will be more likely to sell. More potential sellers means more potential properties to check out. While Raleigh is at an historic low point in its inventory, we expect high prices and a typically busy spring market to help increase the flow of available homes on the market. That special place you have been eyeing for years just might be available or become available in the near future if the current housing market remains as it is.
Wage Growth is Expected to Provide Balance
While interest rates are rising, wages are also rising. In big cities like Raleigh, North Carolina, wage growth may provide a balance for homebuyers who are looking for an opportunity to enter the housing market. This is also sure to impact the purchasing power of current homeowners who are looking for an upgrade as well.
There is Still a Housing Shortage
The housing shortage that started a few years ago is still something to acknowledge as a home buyer. While homeowners are more likely to sell their homes right now, home buyers are more likely to snatch them up quickly. That’s why it’s important for you to be proactive and take advantage of opportunities that come your way. Working with an experienced Triangle real estate broker from Rich Realty Group can give you an advantage in this competitive market, whether buying or selling a home!
Property Tends to Appreciate in Value
One thing to keep in mind about homeownership is that you also own the land on which the physical structure of your house sits. This land tends to appreciate as time goes on. In this way, you are making an investment in your property when you purchase a home. Even if prices are high, there is a good possibility that you will sell your property for more than you paid for it. In Raleigh, home values increased 17% YOY from 2021-2022 - and have been at a steady upward climb for years.
In conclusion, if you are looking for the perfect time to purchase a home, it’s going to be a challenge to find it right now. However, despite the price and mortgage increase over the last year, now is not a bad time to consider making your dream a reality. With this being said, if you have been considering purchasing a home recently, you should reach out to a Rich Realty Group broker to ensure that you are aware of all the factors that go into the home buying experience.
We’re always here for you, and it’s a great day to buy real estate!