Like any major investment, buying a home is all about timing.
Is now the best time to take the risk and jump into the home ownership pool? In the Raleigh market, 2018 certainly looks like the right time; but sooner rather than later because it could be quite a different pool you are jumping into if you wait until the latter part of the year.
Yes, the past couple of years or so have seen crazy upward movement in price appreciation and yes, there’s a shortage of inventory – record lows to be exact. While all that doesn’t seem too comforting to a buyer, there are other aspects to consider about the temperature of that housing pool you are about to dive into.
Even this early in 2018 we are seeing some home prices leveling off, and while inventory is still low, analysts say all that is about to turn a corner, especially in price points above $350,000. While 2017 saw home prices appreciating at a rate of 5.9%, these prices are expected to level out this year to around 3.7 in the Triangle area.
Three other factors could push you into the pool sooner rather than later:
- Two – four more mortgage rate increases are predicted to happen this year. You could be looking at a rate of 5% by the end of 2018. Increased mortgage rates decrease the amount of home you can afford to buy.
- While prices are not predicted to climb at the steep increase we’ve seen this past year, they are going to continue to climb.
- Home builders are working hard to close that gap in inventory, however, construction labor is not getting any cheaper, land in the Raleigh proper market is scarce, and banks are getting tighter with building loans. These limitations slow the supply side of housing availability.
Buying is still a more desirable option than renting in the long-term.
Even if this competitive market makes it a challenge to find just what you want in a home, it is possible if you seek the right team of Realtors to help you. If you are considering taking that plunge in the near future, it’s best to consult a Realtor who has years of experience in this market. Think of them as your personal lifeguard. Their knowledge and determination can be the difference between a refreshing dip in the housing pool or diving head first into the deep end without a floatation device.
If you think purchasing a home in this market is tricky, set up a consultation with one of our agents and let them guide you through the ins and outs of buying safely in this market. Our 30+ years of helping people like you buy and sell homes in the Raleigh area gives us a vast amount of knowledge we are ready to put to work for you.