First Time Home Buyers Archives - Raleigh Real Estate Blog

April 18, 2019April 15, 2019

No, We are Not Headed Towards a Housing Crash: Here’s Why

In the past few months, you may have heard whisperings about an incoming housing market crash. We’re here to put you at ease: we are not headed towards a crash!

A lot of this concern comes from average home prices slowing in growth across the country. We wrote a blog about it last week, but this is not a bad thing! It just means the market is shifting back towards normal.

The Three Most Important Factors

A luxury home interior with a fireplace.

Today’s market is wildly different than the pre-crash housing market of the late 2000s. We’re going to show you why and how using three important metrics that measure the Raleigh real estate market.

Home Prices

Beginning in 2008, average home prices in the U.S. dropped almost 29% over a four year period. That’s drastic, and it’s what spurred the housing market crash!

Today’s average home prices are not depreciating. It’s just that the level of appreciation is slowing down. Over the last year, homes have increased by more than 4%.

While this is less than the 6-7% prices appreciated over years prior, it in no way indicates that we’re headed towards a crash!

Mortgage Standards

A white table with a checkbook and small stack of money.

In the current real estate market, it’s considered easier to get a loan from the bank than in years prior. Many are concerned that these “lenient standards” will contribute to a housing crash.

However, the Urban Institute’s Housing Finance Policy Center released a quarterly index that details the percentage of home purchase loans that are likely to default. When this rate is very low, it indicates that lenders are unwilling to tolerate defaults. This makes it much harder to get a loan.

When that percentage is higher, it indicates that lenders are more lenient so it is easier to get a loan.

In another report called the Housing Credit Availability Index, the Urban Institute also revealed that there is still ample space to expand the housing market credit box. Even if the current risk of default was twice what it currently is, it would still be well within the pre-crisis standard of 12.5%.

Foreclosure Rates

In the last 10 years, foreclosures and short sales have made up 35% of all home sales. That’s huge!

At the end of the fourth quarter of 2018, the percentage of loans in the foreclosure process was just 0.95%. It hasn’t been that low since 1996!

Ready to Explore the Raleigh Real Estate Market?

Linda Craft & Team REALTORS® is ready to help. Give us a call today to learn more about the best way to buy a home in the greater Raleigh market.

Rely on our expertise, our extensive resources, and our proven track record with buying homes in Raleigh. We’ll guide you towards a successful outcome in the Triangle, guaranteed.

April 9, 2019April 15, 2019

The Real Estate Market is Returning to “Normal:” Here’s Why That’s a Good Thing

In the past couple of months, we’ve written about how the Raleigh real estate market is primed for sellers. That’s because of a discrepancy between housing demand and housing supply.

When there aren’t enough homes for sale to satisfy buyer demand, home prices rise. In fact, over the past few years, home price appreciation has averaged around 6% across the country. These conditions are known as a “seller’s market.”

So What’s Changing?

A spacious, luxurious kitchen with a huge island in the center.

The market is starting to level out a bit. Home price growth has begun to cool down, with a recent report by CoreLogic showing that prices have only risen by 4.7% over the last year.

While housing prices have by no means stagnated, many buyers and sellers are still worrying that this recent activity means another housing crash is on the horizon.

Don’t Worry, the Market is Doing Just Fine

A business professional showing a client shifting trends in market activity.

Sure, the market is cooling off a bit, but that’s not a bad thing! It also does not indicate that we are headed for a crash.

It means that the real estate market is returning to “normal.” The inventory of homes for sale is growing to meet buyer demand, so housing prices aren’t increasing dramatically.

This is good for buyers: it means that housing prices aren’t skyrocketing, so more people will be able to afford homes in their preferred neighborhood.

Will Housing Prices Go Up Again?

Sold house sign in Midwest suburban setting. Focus on sign.

Most likely, yes! The Joint Center for Housing Studies at Harvard University estimates that over 30 million new households will enter the market from now through 2040.

Is Now the Right Time to Buy a Home in Raleigh?

Yes! If you’re interested in buying a home in Raleigh, or anywhere else in the NC Triangle, now is the time to act. Here at Linda Craft & Team REALTORS®, we have the resources and expertise to assist.

Just give us a call today to learn more! You can also browse our home-buying resources, see what homes are currently going for in Raleigh, and explore specific communities in the Triangle.

March 26, 2019March 22, 2019

First Comes Love… then Comes Your First Mortgage Payment!

Every year, the National Association of Realtors® conducts a survey to determine the profile of home buyers and sellers across the country.

The 2018 profile is interesting because the majority of recent homebuyers (a whopping 63%!) are married couples!

The Majority of First-Time Buyers are Married Couples

A married couple standing on the porch of their new home.

It’s true! According to the NAR, 54% of first-time buyers in 2018 were married couples.

However, if you’re still single, there’s no need to worry. 18% of first-time home buyers in 2018 were single women, while 10% were single men. In addition, about 16% of these buyers were unmarried couples.

Homeownership is Within Your Grasp!

Spacious living room with beige sectional sofa and a coffee table.

Even if you haven’t saved up an enormous down payment, you likely still have plenty of options for buying a home in the greater Raleigh area!

Many homes for sale in Raleigh, and the Greater Triangle area, qualify for loans that don’t require huge down payments. You may be able to use an FHA loan or a USDA loan to purchase a home in one of Raleigh’s orbiting cities—in communities like Angier, Fuquay-Varina, and Apex.

These loans are popular because they only require a down payment that’s 1 – 3% of the home’s overall price. And, if you’re in the military, you have even more options!

Let’s Buy Your Dream Home Together

A hand holding a pair of house keys in front of a home.

If you’d like to explore your home-buying options in the greater Raleigh area, please give us a call at Linda Craft & Team REALTORS®. Whether you’re a first-time buyer or looking to invest in your fifth real estate property, we have the resources and expertise to assist.

Let’s set up a time to talk about your plans! In the meantime, feel free to explore the Greater Raleigh area with our free home-buying guides.

March 12, 2019March 12, 2019

How Homeownership Makes the Biggest Difference

If you’re looking for the most surefire way to build your wealth, become a homeowner. We’ve blogged about this in the past, but it really is one of the most effective (and simplest) ways to build your wealth for the long term.

The majority of homeowners take out a mortgage loan to buy their home. By paying off your home’s mortgage every month, you’re building your wealth. Although it feels like you’re paying somebody else (the bank) you’re actually putting money into a forced savings account.

And forcing yourself to save money pays off. Big time.

It Helps You Achieve the American Dream

A core part of what many consider “The American Dream” is owning a home. Owning your own home brings a myriad of benefits, both financial and non-financial.

Financially speaking, buying a home and becoming a homeowner increases your net worth. Every time you make a mortgage payment, your net worth goes up a little.

Here’s an example: in a study performed by The Joint Center for Housing Studies at Harvard University, researchers found that the difference in net worth between homeowners and renters over 65 was 47.5 times greater.

In that study, nearly half of those homeowners’ net worth came from their home equity!

It’s a Huge Retirement Benefit

Studies show that homeowners over 65 are more financially prepared for retirement. Even if they choose to sell their home and downsize for retirement, they have the added bonus of owning their home for a long time—meaning their home has likely increased in value.

Now, when they choose to sell their home, they’ll make an even bigger return on their investment.

Although renting may seem like an affordable option short-term, it’s less lucrative in the long term. This is especially true when you consider that median rent prices have increased substantially every year.

Plus, It Has Emotional Benefits

You deserve to love where you live. That’s the biggest emotional benefit you get from owning your home: you get to put down roots and invest in a community that will improve your quality of life.

When you buy a home in a community like Raleigh and the NC Triangle, you’re signing up for an exciting, well-rounded lifestyle! The Triangle has plenty of small towns, gorgeous real estate options, and maybe even a major city or two.

Ready to Become a Homeowner?

We’re ready to help. Start building your wealth and guaranteeing yourself a more successful retirement by buying your dream home in the greater Raleigh area.

Just call us, Linda Craft & Team REALTORS®, today to get started. You can use our free home-buying resources, easily search for homes in the area, and see popular Raleigh homes for sale.

February 26, 2019

A Quick Study Guide on What “Affordability” Means in Raleigh Real Estate

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.

February 9, 2019February 8, 2019

You Should Be Building Your Own Wealth… Not Your Landlord’s

There’s no doubt about it: buying a home is a daunting task. In fact, many potential buyers are nervous about the commitment and obligation that comes with buying a home.

If you’re more comfortable renting because you think you can’t afford buying a home, we should talk. The truth is, even when you’re a tenant, you’re still paying a mortgage. Unless you live completely rent-free with a relative, you’re helping someone build their equity and pay off their mortgage with your rent money every month.

You’re paying your landlord’s mortgage, and giving them a little extra for themselves each month. Wouldn’t you rather be building your own wealth?

If You’re Serious About Your Finances, You Should Buy a Home

Buying a home is one of the most surefire ways to build wealth for the long-term. Additionally, it gives you significant benefits to your credit score, as well as a sense of security.

When you own your home, you’re not at the mercy of your landlord—who may raise your rent whenever they see fit. Plus, owning your home means you can decorate and renovate it to match your unique tastes! You have complete freedom over what goes in and what comes out.

In Fact, It’s a Great Time to Buy in Raleigh

The spring home-buying season is shaping up to be a good one. Interest rates are still historically low, while inventory only continues to grow. That means this spring will be a wonderful time to buy a home in Raleigh.

Get a head of the competition by beginning your home search today! Do some research and come up with an idea of what kind of home you’d like to buy.

If you need any help locating potential homes for sale in the area, please don’t hesitate to give us a call. At Linda Craft & Team REALTORS®, we have the inside scoop on the area’s best new listings.

Join the Home-Buying Ranks

It’s never too late (or too early!) to buy a home in Raleigh. Trust us, if you can afford to pay rent every month, you can afford to buy a home.

Plus, there are plenty of mortgage options out there that require little to no down payment! There’s no excuse not to take advantage of excellent market conditions and become a homeowner.

January 28, 2019January 28, 2019

Want to Build Your Wealth? It’s Time to Buy a Home in Raleigh

The most surefire way to begin building your wealth in the NC Triangle? Become a homeowner.

Buying a home essentially forces you to build wealth. To purchase a home, you have to apply for a mortgage loan to pay for it. Then, every month, you pay off a percentage of that mortgage. Each mortgage payment brings you a little bit closer to fully owning the home on your own, and makes your equity a little big bigger. To be honest, your home is really just one big savings account.

So, owning a home and paying your mortgage every month builds your wealth for the long run.

Owning a Home Leads to Financial Security

According to many housing experts in the real estate industry, buying a home before the age of 35 leads to being better prepared for retirement at age 60.

If you’re a millennial in the greater Raleigh area, you may believe that you can’t afford to buy a home because of the massive down payment or the high mortgage interest rates. However, that’s not actually true!

If you can afford to pay rent every month, you can afford to buy a home. Plus, with so many different mortgage options available, it’s not always necessary to pay a huge 20% down payment!

Navigate the Triangle Real Estate Market

It’s never too early to begin planning for your retirement. And, the sooner you begin saving, the better off you will be when it’s finally time to retire!

It’s no secret that housing wealth is the largest single source of wealth currently available. Plus, the emotional benefits that come from buying a home are on the same level as the financial benefits!

If you’re interested in building your wealth by buying a home in the greater Raleigh area, then it’s time to contact Linda Craft & Team REALTORS®.

You Deserve a Successful Real Estate Transaction

When you choose to work with Linda Craft & Team REALTORS®, you’re enlisting the help of an all-star team that will stop at nothing to make sure you achieve success in the Triangle real estate market.

As the Triangle’s #1 Ranked Real Estate Team, we know exactly how to help our clients find the perfect home. Give us a call today to explore your real estate options in the greater Raleigh area!

January 21, 2019January 21, 2019

Market Update: Are Low Interest Rates Going to Stick Around?

If you’ve been eyeing the Triangle real estate market for a while, you’ve probably noticed interest rates rising in 2018. As we enter the first quarter of the new year, it’s important to stay on top of changing mortgage interest rates.

Right now, interest rates for mortgages in the United States are on a downward trend. As 2019 began, the interest rate for a 30-year fixed-rate mortgage dropped to just 4.51%. In addition, the growth of home prices are expected to slow.

So, what does it all mean?

It’s a Great Time to Buy a Home in Raleigh

If interest rates remain low, now is a wonderful time to apply for a mortgage and buy a home in Raleigh! As interest rates increased in 2018, many homebuyers decided to pause their search for a new home.

But, if you’re in the Raleigh real estate market, now is the time to pick the search back up! As we continue through 2019, the inventory of homes for sale in Raleigh is expected to pick back up, while interest rates are expected to grow slowly from 4.77 to about 4.93 by the end of the year.

How Much Will Interest Rates Increase in 2019?

Organizations like the Mortgage Bankers Association, Fannie Mae, and the National Association of Realtors project that interest rates will increase in 2019. However, they will not increase as rapidly or dramatically as they did in 2018.

The bottom line: if you’ve been hesitating on buying a home in Raleigh, it’s time to dive into the real estate market. Low interest rates, a growing inventory, and the slow growth of home prices have created ideal conditions for home buyers in Raleigh!

Ready to Find the Perfect Home in Raleigh?

Linda Craft & Team REALTORS® are here to help. With a combined 30 years of real estate experience in the Triangle, our team possesses the unique expertise necessary for making a highly successful home purchase.

We’re the #1 Triangle Real Estate Team for a reason. We offer customized services, in-depth real estate resources, and extensive real estate expertise to our Raleigh homebuyers. If you’re ready to expand your home search in Raleigh, then it’s time to give Linda Craft & Team REALTORS® a call.

January 17, 2019January 17, 2019

The Real Benefit to Buying a Home in the Triangle

When it comes to real estate, it can be easy to get bogged down by the numbers. How much money are you going to spend on a home? Are you going to be able to build substantial equity over the years? If you decide to sell before your mortgage is paid off, will you have to renegotiate with the bank?

While the financial side of buying a home is important, what’s possibly even more significant is its emotional aspect. Buying a home has many intangible benefits; home is where you look forward to returning at the end of a long day. It’s the one place you can truly feel at peace and be yourself. It’s a place where you feel safe, loved, and protected.

The purchase of a home is unlike any other purchase you’ll ever make in your lifetime.

Owning a Home Brings Stability

When you buy a home, you’re not simply purchasing a property. You’re choosing to invest in a unique community that’s going to shape your way of life.

That’s why we’re so excited you’re exploring the Triangle as your new home. With its many different neighborhoods, towns, and cities, the Triangle offers a wide variety of different communities to choose from.

You Have Total Freedom Over Your Space

Unlike with renting, owning a home means having near-unlimited possibilities to customize your space as you see fit! Want to install a fire pit in the backyard? Interested in transforming your extra bedroom into a home gym? Eager to paint a wall in your kitchen with inspirational quotes? When you own a home, you have all the options in the world.

You’re also free to adopt pets, install Pinterest-inspired light fixtures, and do whatever else it takes to make your house feel like home.

There’s No Place Like Home

The biggest reason to buy a house? To make it a home.

Create a space where you and your loved ones can come together to celebrate and to take care of one another. Set up a guest bedroom for when company visits, decorate your dining room for the holidays and the big events, and get excited about your new life in a community as charming as the Triangle!

Ready to Buy a Home in the Triangle?

We’d love to help you along. At Linda Craft & Team REALTORS®, we understand our buyers’ unique needs and expectations in a real estate transaction. As leading Triangle REALTORS®, we’re more then prepared to guide you towards a successful, lucrative, and emotionally fulfilling home purchase.

Get in touch with us today to learn more. In the meantime, browse some of our most popular Triangle homes for sale.

December 19, 2018December 18, 2018

Still Renting Your Home? There Are Better Options Available!

2018 is quickly drawing to a close, which means it’s time to start planning for the new year. If you’re still renting a home in the Triangle, please know that you have better options available!

Have you been dreaming of becoming a Triangle homeowner? You’re not alone! This is a wonderful area to invest in, and an ideal time to buy a home. Home values in the Triangle are expected to increase over the coming years. This makes now the time to act!

Take a look at our complimentary home-buying tools to get an idea of your options in the Triangle. Oftentimes, it’s less expensive to pay a mortgage every month than it is to keep up with annual rent increases, and all the other fees associated with leasing!

What Do You Dislike About Renting?

According to a 2018 Bank of America Homebuyer Insights Report, 75% of millennial renters plan on buying a home in the next 5 years, and 38% are planning to buy in the next 2 years!

Those surveyed were also asked what they disliked about renting. 52% said rising rental costs were their biggest reason. Other factors included “not building equity,” “feeling like I’m paying my landlord’s mortgage,” and “not being able to have pets.”

There’s plenty of merit to that concern, as the median asking rent has risen steadily every year since the 1980s.

Common Misconceptions About Buying a Home

If you plan out your budget every month, you’ve probably heard of this rule “don’t spend more than 30% of your monthly income on housing expenses.” Did you know that almost half of all renters surveyed in the Bank of America Report spend much more than that on their monthly rent?

When asked what was stopping them from buying a home, many responded that they “weren’t able to save the 20% down payment.”

However, this is one of the biggest misconceptions about buying a home! It is possible to buy a home without putting 20% down.

Ready to Explore Your Triangle Home Buying Options?

Allow our team of experienced Triangle real estate agents to guide you through the process. For more information about what kind of homes are available in the Triangle, and what your options are as a buyer, please get in touch.

As the #1 Real Estate Team in the Triangle, Linda Craft & Team, REALTORS® are fully prepared to find you the home of your dreams and negotiate an excellent price on your behalf.