Key Takeaways
- The spring 2023 real estate market may be the best time to buy
- Don’t get caught in the cycle of renting and paying someone’s mortgage
- Contact the Linda Craft Team Realtors to start searching for your Triangle area home
Making the decision to buy a home isn’t an easy one. There are many variables to consider, from the state of the current market to your financial situation. You may have spent the first quarter of 2023 wondering when the right time to buy in the Triangle is. It may finally be time to stop wondering and make that move
Projections from leading economists, housing market analysts, and investment strategists suggest that spring 2023 may be among the best times to make a move. According to their estimations, 2023 will see a 1.61% drop in home prices throughout the year. However, that drop won’t last forever, and the forecast shows a remarkable turn in 2024, with home prices climbing 1.90% and steadily increasing year over year throughout 2027.
But if the projections of industry specialists aren’t quite enough to get you to consider buying your Triangle area home this year, Linda Craft Team Realtors wants you to consider the following three points and weigh them with the expectation that home prices are expected to rise.
You’re Overpaying for Someone Else’s Mortgage
It’s true that there are conveniences that come with renting. Not being responsible for major repairs and being able to relocate on a whim if the need arises are certainly nice, but think about what you’re doing as a renter. You’re not building equity of any kind. In fact, you’re building someone else’s equity and likely paying more than the mortgage to match rental market prices.
And that last bit is the worst part. Triangle area rents have been rising consistently for years, even when housing prices may have remained stagnant or dropped. Once you’re locked into a lease, you can expect to pay at least that amount even if home values have dropped significantly, and we’ll talk more about the fixed-rate mortgages that may be causing this shortly. It’s very unlikely that your rent will ever go down so long as you keep signing with the same landlord, and the alternative of moving is a costly headache you don’t want.
Unfortunately, paying more for rent leaves you less money to set aside for a down payment, forcing you into a cycle that can be difficult to get out of. It’s best to break away sooner rather than later.
You Want to Be Inflation Proof
When you own a home, you can actually be protected from some of the qualms of inflation. Specifically, if you enter into a fixed-rate mortgage (which you should), your housing payments won’t increase regardless of how bad inflation gets. You’ll only wind up paying more if you go to refinance your mortgage, at which point you’ll enter into a new mortgage under the current market rates.
When you do buy your Triangle area home, avoid an adjustable-rate mortgage. It may be tempting as payments can be lower up front, but you’re at the mercy of the market throughout the life of the loan. If the rates increase during a period of evaluation, your mortgage payments can increase.
Need a little help understanding mortgages? Check out our mortgage resources to see all available options, calculate your potential payments, and see if there are special mortgages you may qualify for.
Your Net Worth Could Be Much Higher
The reality of renting is that you’re not building anything. We mentioned equity before, but now we’d like to focus on your overall wealth. When you own a home, the value of the home beyond what’s left on the mortgage is part of your net worth. Since you’re constantly paying off the mortgage’s principal, unless you incur additional debts, your net worth as a homeowner is typically always increasing until the mortgage is paid in full or if the value of the home is less than the mortgage.
As a renter, you don’t own any portion of the property. Even if your payments wind up clearing out the landlord’s mortgage, you can’t factor the price of the home into your net worth. However, you did just increase the landlord’s net worth.
Knowing your net worth is important when you’re making big financial decisions, such as retiring.
Make Your Offer on a Triangle Home Today
Buying a home is a big decision. We understand that. But you don’t want the hesitation to make that decision to get in the way of a healthy financial future. Spring 2023 is shaping up to be a great time to buy a new Triangle area home, as home prices are expected to drop for the year before jumping back up in 2024.
If you need a little more help making the choice to buy, consider reading through some of our buyer resources, which talk about being a first-time homebuyer, mortgages, and even answers some of the most pressing questions buyers have before running to find a Triangle home on the market.
As you decide whether buying is right for you this year, remember these three points, and don’t hesitate to contact us if you have any questions or want to move forward.