While renting has a number of unique benefits, it also has one big disadvantage in the Raleigh area: it’s skyrocketing.
While rent prices have gone up significantly every year since 2005, the average mortgage payment has actually decreased since then. In fact, according to Core Logic, the average rent has increased by 36% between 2005 and December 2018. In that same time period, the average monthly mortgage payment went down by 4%.
What does this mean for people living in Raleigh? It’s time to buy a home. Here’s why.
Rent Prices are Only Going to Continue Increasing
This goes without saying. For renters, there’s no assurance that your landlord won’t jack up the rent prices every year you continue living there. Landlords do this to keep up with inflation, but also because they can.
If you buy a home, however, you can expect payments that are both lower and set. Depending on the type of mortgage loan you take out to finance your home purchase, you can probably expect to pay the exact same amount every month during the term of your loan.
Is Buying a Home Really More Affordable?
Yes. It all has to do with your mortgage. Your monthly mortgage payments depend heavily on your loan’s interest rates. Luckily, mortgage rates right now are some of the lowest they’ve been since 2005.
According to the Economists’ Outlook Blog, the percentage of income needed to purchase a home throughout the United States has decreased steadily since November of 2018. This is great news for potential buyers: it means that they’ll need less of their income to afford a home.
Want to Learn More About Buying a Home in Raleigh?
Linda Craft & Team REALTORS® is here to help. Give us a call today to begin exploring your home-buying options in Raleigh and the greater NC Triangle area. With our years of experience, in-depth market knowledge, and local real estate resources, we have everything you need to make a successful home purchase.