Depending on which news outlet you go to, you may hear some pretty contrasting takes on the current real estate market. Some say the market is going up, others say we’re headed towards a crash similar to the one in 2008.
Instead of relying on over-sensationalized media reports, we prefer to look at the data. Numbers don’t lie, and they’re a reliable way to see exactly how the market is behaving. We took a look at some reports from three top Chief Economists and want to share our findings with you.
Here are three things you should know about today’s real estate market, based on the data.
1. Low Interest Rates Make for Confident Buyers
The real estate market throughout the country is warming up as a result of low mortgage rates.
Mortgage rates are at an all-time low, and they haven’t risen significantly over the past few years. These low rates have caused consumer confidence to skyrocket, which has resulted in increased home purchases throughout the United States.
Both sales demand and inventory have steadily risen, which signals that the market is only going to get hotter!
2. Increasing Incomes = More Home Sales
Early this year, existing homes sales increased by almost 12% between January and February.
Lawrence Yun, Chief Economist at the National Association of Realtors, said this in response to rising home sales, “A powerful combination of lower mortgage rates, more inventory, rising income and higher consumer confidence is driving the sales rebound.”
In fact, since August of 2018, the average hourly wage has increased steadily—suggesting that the economy is in an upswing.
3. Home Price Appreciation Has Slowed
Many are worried over the real estate market because of one crucial trend: home value appreciation has begun to slow. This means that home values are not increasing as drastically as they have in years past. But believe us when we say: this is a good thing.
This signals that the real estate market is returning to normal. It is not heavily tilted towards either buyers or sellers, but exists somewhere in the middle.
This makes now a great time to buy and sell your home—especially in a community as robust as Raleigh and the NC Triangle.
Navigate the Real Estate Market Like a Pro
Interested in buying or selling a home in the greater Raleigh area? Here at Linda Craft & Team REALTORS®, we have the local resources and market expertise to help you make a successful transaction in Raleigh. Give us a call today to learn more.