When we talk about “affordability,” a lot of definitions may come to mind. For real estate specifically, affordability is something of a hot topic.
While it is true that buying a home is less affordable today than it was at any other time in the past decade, that has a lot to do with the real estate market crash of 2008.
If you’ve been in the real estate game for a while, you probably remember the flood of distressed properties that hit the market at this time. Due to the poor state of the economy, foreclosed and short sale homes were going for a huge discount. This rush of distressed homes actually damaged the value of other homes within a neighborhood.
Lucky for everyone involved in the real estate industry, things have since changed!
The Market Has Changed Since Then
Over the past decade or so, the market has recovered and prices have gone up right along with it. This isn’t a bad thing! A strong economy is good for everybody, especially those trying to sell their home for what it’s worth in the Triangle.
As such, both home prices and mortgage rates have increased. To make the best possible decision in the Raleigh real estate market, it’s important to have plenty of resources to rely on.
So Mortgage Rates Have Shifted
When most buyers think of a home’s “affordability” they’re picturing two things in particular: the listing price of the home and the mortgage rate they’ll have to pay.
According to a CoreLogic report written by Andrew Lepage in late January, the “typical mortgage payment is a good proxy for affordability because it shows the monthly amount that a borrower would have to qualify for to get a mortgage to buy the median-priced U.S. home…”
While mortgage rates are slowly increasing, they are nowhere near the gargantuan rates of the 2006 housing boom (think an average monthly payment of $1,275…)
By the end of 2019, experts have projected the typical monthly mortgage payment to be about $963.
What Does That Mean for Buyers and Sellers?
Whether you’re thinking of buying or selling a home in Raleigh, please know that this is one of the most advantageous times to invest in real estate!
At Linda Craft & Team REALTORS®, we have the market expertise necessary to help you make a highly valuable transaction in this area. Please give us a call today to learn more about your Raleigh real estate options.