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Homes in the Triangle Are Now More Affordable Than Ever—Here’s Why!

Even amidst a global pandemic and economic downturn, home prices just keep going up. And while this may seem like great news for sellers, buyers have also gained a serious advantage over the last few months. Believe it or not, homes in the Triangle are now more affordable than ever before thanks to record low mortgage rates!

Want to make the most out of your newfound buying power? We have the details you need to know.

Why Homes Are Becoming More Affordable

Typically, skyrocketing home prices only work in favor of sellers—but today’s market conditions are far from the norm. Although we’ve seen prices rise for 97 consecutive months, rock bottom mortgage rates have made purchasing an average-priced home the most affordable it’s been since 2016.

How have buyers gained an advantage?

Even in a seller’s market, home seekers can now afford more than they might expect. As of mid-July, a buyer would have to put forth 19.8% of their median monthly income to pay their mortgage on an average-priced home. That’s more than 5% below the average of 25% from 1995 to 2003!

These numbers speak for themselves when you break them down into a monthly payment. The average mortgage payment has dropped by 6% compared to last year, which puts it at just $1,071. And despite these amazing decreases, home values have still shot up by $12,000 since 2019.

Is now the right time to buy?

Talking with an agent

If you found yourself priced out of the market last year, you may want to reconsider your move. Buying power has actually increased by 10% year over year, so the average buyer can afford nearly $32,000 more home than they could in 2019…all without upping their monthly payments.

Most of these changes occurred when the Federal Reserve dropped interest rates in July. We saw a whopping $15,000 surge in purchasing power when rates fell from 3.23% to 2.98% for a 30-year fixed-rate mortgage. While rates aren’t expected to increase anytime soon, it’s best to take advantage of them before they start fluctuating!

Bottom Line: Now Is the Time to Move

Owners holding keys to an affordable home

Homes haven’t been this affordable in the Triangle since 2016, which means there’s never been a better time to make a smart investment. If you ever have any questions about today’s low mortgage rates or the current state of the market, our team is always on hand to answer your questions!

Ready to Take Your Next Steps?

If you’re thinking about buying or selling your home in the Raleigh area, only trust the experts. Contact Linda Craft & Team today at 919-235-0007 to learn more about how we can put our 350+ years of combined experience to work for you.

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