Nervous About a Recession? Here’s Why You Don’t Need to Worry about a 2008 Repeat

If you’re getting ready to buy a home soon, then you’ve probably heard whispers of an imminent recession—and the real estate market and recessions don’t have a great track record. Although it’s hard not to be plagued by memories of the 2008 recession and the housing market crash, you need to know: the conditions of 2008 will not happen again.

Here’s what makes this year’s market different, and why you shouldn’t be nervous about buying a home.

Even Though People are Wary…

People talking around a laptop.

It must be addressed that the events of 2008 are enough to give any buyer some PTSD. In fact, a recent survey from realtor.com found that 53% of buyers (both first-time and repeat) believe a recession will occur this year or next, and 57% believe it’ll be worse than 2008. On top of that, 55% said they would cancel their plans to move if a recession did occur.

While these people are certainly right in their prediction that a recession could soon hit, it won’t have nearly the same effect on the housing market that it did ten years ago.

…The Housing Market Won’t Resemble 2008

A large house.

Jeff Tucker, a Zillow economist, sheds a little more light on this point. In a recent article, he outlines how unusual the 2008 housing market was—largely because of risky borrowers taking unpredictable, adjustable-rate mortgages when they may not have been financially prepared. This year, however, the market is mostly made up of buyers with great credit scores taking out predictable, 30-year fixed-rate mortgages.

George Ratiu, a senior economist for realtor.com, echoes Tucker’s sentiments, adding that a recession now would likely be much shorter than the one we saw in the past.

2001 vs. 2008

In the recent history of our country, there have been two major recessions: 2008 and 2001. While most people vividly remember the almost 20% drop in home prices during the 2008 recession, not many remember that homes prices actually went up almost 7% during 2001’s.

When it comes to the next recession, you can expect conditions to be more similar to 2001, not 2008.

Still on the Fence?

People shaking hands.

It’s true that no one can predict the future, and the state of the economy could greatly change over the next 12-24 months. While it’s great to be cautious, it’s also important to keep a realistic mindset—and listen to the experts.

If you’re hoping to buy a home soon, you should know that you don’t have to worry about 2008-like conditions. The current and future market are still great for buying!

Start Your Buying Journey

Ready to get started with your home search? Then Linda Craft & Team REALTORS® is here to help. Get to know more about our expertise and local knowledge, explore some of our resources, and give us a call when you’re ready to explore all of your Raleigh real estate options!

5 Simple Steps to Decrease Your Buying & Selling Stress and Avoid Information Overload

The internet is an amazing tool, but sometimes, having easy access to all of the information we could ask for can be overwhelming—especially when facing a major decision like buying or selling a home.

Which season is the best for buying? How do you price your home correctly? What do you need for your mortgage application? Oftentimes, conflicting answers can complicate our decisions.

Avoid confusion, take a deep breath, and stay on the right track by following these five steps!

Calm Down

According to productivity expert Jeff Davis, the first and most important step is to recognize any stress or concern that might be building up, and stop it in its tracks before it leads to more panic.

Slow Down

A woman in a coffee shop.

Take a minute, and let yourself breathe. The pace at which you can find information gets quicker and quicker as technology improves, and it can often make you feel pressured by unrealistic time constraints. Stop for a moment and collect your thoughts!

Think

Why did you want to buy or sell your home? Why did you choose now? What are you hoping to achieve? Remind yourself of your goals, and recognize anything that might be impractical. Are you still focused on what’s most important?

Plan

A person journaling.

Now that you’ve gained some new knowledge, does anything about your search need to change? Do you need clarification on a few points, or are you worried about a certain outcome? Your agent is the perfect resource for any of your questions or concerns—that’s what they’re there for!

Act

Have you taken time to consider your options? Give it some thorough consideration before making any concrete moves, then meet with your agent and get the ball rolling.

Avoid Information Overload

Two women meeting around a laptop.

Don’t get stressed out about all of the conflicting information on buying and selling—and don’t overload yourself by not coming up for air! Instead of consulting the World Wide Web, take your questions to Linda Craft & Team REALTORS®. With over 300 years of combined real estate experience, we can give you the right answer to any and all of your buying and selling questions.

Ready to Get Started?

So are we. Get in touch with Linda Craft & Team REALTORS®, and we’ll guide you through the confusing ins and outs of the real estate process. Get to know more about our resources, expertise, and local knowledge, and give us a call when you’re ready to explore all of your Raleigh real estate options!

The Best Real Estate Advice for Millennials—from a Millionaire

If you’re a millennial, then you’re probably a little tired of hearing all the criticism towards your generation. Buying avocado toast instead of saving money, always texting instead of calling—they’re all pretty unfair generalizations.

Another common criticism of millennials? That they never buy homes. But actually, that couldn’t be further from the truth! In fact, millennials represent the largest portion of homebuyers in the market.

And according to millionaire David Bach, buying a home is one of the best decisions you can make for your future equity.

It’s All About Owning

A beautiful home.

Since you’re likely working with limited funds, your first home probably won’t be your dream home—but that’s okay. Getting your foot in the door and buying a home is the stepping stone to building wealth and equity, according to Bach. Even if your budget isn’t as high as you’d like, it’s best to buy as soon as you can!

In Bach’s opinion, you should start by crunching the numbers. You might think you can’t afford a home, but setting clear goals based on concrete numbers will help put things into a realistic perspective.

A good rule of thumb? Make sure your home payments don’t total more than 30% of your take-home pay.

David Bach’s Background

A person pulling money out of their wallet.

Why should you trust what Bach has to say? Well, his resume speaks for itself. A self-made millionaire, Bach has written nine consecutive New York Times bestsellers.

Not only that, but he’s also one of the only business authors to ever have four books on the New York Times, Wall Street Journal, BusinessWeek, and USA Today bestseller lists at the same time. His book The Automatic Millionaire even spent 31 weeks on the New York Times bestseller list!

Additionally, Bach is considered to be one of the foremost authorities on finance, appearing as a contributor on NBC’s Today Show,  ABC, CBS, Fox, CNBC, CNN, Yahoo, The View, and PBS.

Why Now is a Great Time to Buy

A person holding up house keys.

If you’re all in on following Bach’s advice, then you should know: now is the perfect time to buy a home—and we’re not just saying that.

Mortgage rates are hitting near-record lows, and home prices are steadily increasing. Buying a home soon means saving on payments now and benefitting from higher prices in the future.

Ready to Get Started?

We understand that buying a home is a major decision. But with over 300 years of combined real estate experience, in-depth area knowledge, and a wide collection of resources, Linda Craft & Team REALTORS® are well-equipped to lead you to buying success.

Explore a few of our resources, kick off your home search, and give us a call when you’re ready to get started.

Boost Your Equity over the Next Five Years with One Important Decision

Dipping your toes in the waters of home-buying? Based on the latest numbers, you may want to consider jumping in. In fact, buying a home right now could lead to an equity boost of almost $50,000 in the next five years!

Take a look at a few numbers from the experts, see where home prices are headed, and learn how the Linda Craft & Team REALTORS® can help you today.

Home Prices are Steadily Rising

A computer with graphs and charts.

According to the most recent Home Price Expectation Survey (HPES), home values will appreciate by 4.1% by the end of 2019. That trend will continue well past this year, as well, with an average annual appreciation of 3.2% over the next five years. By 2023, you can expect a staggering 16.8% cumulative jump!

Maybe you’re thinking that those numbers are a little optimistic. We don’t blame you—but even the more pessimistic experts estimate a 6.7% cumulative appreciation over the next five years.

What This Means for You

A miniature house and key.

Assuming those numbers all pan out, buying a home right now could mean major profits in the future. For example: let’s say you find a home you love, you make an offer, and you close for $250,000. By next year, that home’s value will have jumped to $260,000. By 2022, it’ll be almost $275,000. And by 2025? You’re looking at $292,000, a $42,000 jump since your initial purchase.

These numbers might sound too good to be true, but they’re calculated by a panel of over 100 economists, investment strategists, and housing market analysts.

Gearing up to Buy a Home?

A house surrounded by trees and greenery.

Sold on buying a home? In all honestly, you won’t find a much better time than now. With mortgage rates still hovering at near-record lows and home prices steadily ticking up, you could buy a new home for a great price now and make an amazing profit when you list it later. Your future self—and future equity—will thank you.

Trust Linda Craft & Team REALTORS®

Buying a home is a big decision, and one that you want to be well-equipped for. Luckily, the professionals at Linda Craft & Team REALTORS® have over 100 years of combined real estate experience in the Triangle area. Not only can we guide you to the best listings on the market, but we can also offer a wide variety of resources along the way.

Are you ready to buy a home and boost your equity? Give our team a call today!

The 2 Biggest Buying Myths—And Why You Shouldn’t Believe Them

Buying a home is a major decision—one that you should spend plenty of time thinking about. But for many people, that thinking stage quickly becomes filled with anxieties—about money, about mortgages, about lenders—and they may decide to postpone their buying plans.

At Linda Craft & Team REALTORS®, we want to break some of the negative stigma around the buying process. Here are the top two myths that scare away buyers and why you shouldn’t believe them.

Myth #1: The 20% Down Payment

Professionals meeting at a bank.

While a 20% down payment is preferred, it’s far from required—even though 22% of renters and 31% of homeowners believe that it is! In fact, buyers often overestimate how much they need for a home—so much so that it delays their plans.

A recent report from Freddie Mac found that if a 20% down payment was actually required, 70% of people planning on buying the next three years would delay their purchase. Not only that, but 30% of buyers said they would never be able to afford a home under those conditions.

In reality, there are a number of programs available to buyers that help lower your down payment, from VA loans to FHA loans. Give us a call, and we can help you figure out what you qualify for.

Myth #2: The Stellar Credit Score

A person holding out a credit card.

Many people think a “good” credit score is right around 780—and that you need a “good” credit score to qualify for a loan. But according to Ellie Mae’s Origination Insight Report, that number is way above average. In fact, over 50% of approved mortgages had credit scores anywhere between 600 to 749—way below what most people consider “good.”

Even if you don’t have an outstanding credit score, odds are, it’s still good enough to snag the right financing. Need some tips on upping your credit score? Just reach out to my team, and we’ll help you out!

Don’t Let Buying Myths Hold You Back

Buying a home is certainly a tricky process, but it’s often more attainable than people think—especially when you work with a professional. At Linda Craft & Team REALTORS®, we have over 100 years of combined real estate experience around the Triangle, and we’d love to leverage our skills to help you find your dream home.

Take some time to explore our resources for buyers, and give us a call when you’re ready to learn more about your buying options!

Checking in on the Trends: The Positives and Negatives of Today’s Housing Market

Real estate trends are prone to change. After all, there are many factors that play into home prices and mortgage rates, and as the economy changes, the real estate market follows suit.

If you want to get the best possible outcome to your real estate endeavor, staying updated on current real estate trends is crucial to your buying and selling success.

Here are the three biggest changes currently happening in the housing market—and what they mean for buyers and sellers!

Interest Rates are Low…For Now

A man looking at numbers on a laptop.

Interest rates play a huge part in the overall cost of your home, and right now, they’re the lowest they’ve been in years. As of June, rates are hovering right around 3.8%. Back in March, they were as high as 4.4%!

According to the latest info from Freddie Mac, those numbers could be here to stay for a while, but with the current unpredictability of the housing market, there’s no guarantee. So the sooner you buy, the better.

Tariffs Could Drive up Prices

A construction area.

What could tariffs on China possibly have to do with the housing market? Well, many of the tariffs will affect building materials like lumber and steel—and the National Association of Home Builders estimates that around $10 billion worth of those supplies come from China.

With an already low inventory of homes, the increased of cost in building a new home will likely further exacerbate the problem. The tariffs began in June, so the effects may not be fully felt for a little while—meaning now is a great time to buy.

The Economy is Cooling off

A man carrying a newspaper and briefcase.

Previously, many economic experts thought we were headed for a recession this year. While that estimate has been pushed back, three leading surveys (the WSJ Survey of Economists, Duke University Survey of CFOs, and NABE Survey of Members) predict that it’ll happen sometime in the next 18 months.

That doesn’t mean there’s any need to panic, but it does mean that the current economic conditions might be the best that they’ll be for a while.

Ready to Buy Your Raleigh Home?

If you’re on the fence about buying or selling, the current housing trends indicate that now is the time to make some moves. Find your real estate success, and trust in the expertise and years of experience that Linda Craft & Team REALTORS® can provide.

Browse our buying resources, see what homes in Raleigh we love, and give us a call to get started!

Waiting to Buy Your New Raleigh Home? Here’s How Much It’ll Cost You

Buying a home is a big decision, one that requires plenty of thought and deliberation. While it’s important to take your time and feel confident in your choice, you might want speed up the process.

Why? Well, within the next year, buying is about to become significantly more expensive. Take a look at the breakdown of the numbers, and get started with your search soon!

Costs Are Rising

Graphs and charts on a laptop.

Right now, mortgage interest rates are lower than they’ve been in years—even lower than experts had predicted. Over the next year, though, they’re only expected to rise.

Not only are interest rates ticking up, home prices themselves are growing as well. Add those two factors together, and you’re also looking at increased mortgage payments.

Concrete Numbers

A man pulling money out of his wallet.

Let’s put those numbers in perspective. According to Freddie Mac projections, current interest rates are around 4.3%. Next year, they’ll reach 4.5%. While that might not seem like a big jump, when you’re talking about big ticket purchases—like homes, for example—.2% can mean a major difference in cost.

As far as home prices go, CoreLogic estimates around a 4.8% jump. Again, not huge at first glance, but when you start looking at the numbers—like, for example, $250,000 versus $262,000—that’s a difference of over $10,000!

Put interest rates and home values together, and you’ll find that mortgage payments are following suit. Considering the current numbers, your average mortgage payment would be $1,231.60. Next year, that number looks more like $1,321.04.

How Much Will Waiting Cost You?

A man holding a Starbucks coffee.

Bottom line? Waiting to buy may not seem like a big deal at first, but those increased costs will add up quickly—especially in a competitive market like Raleigh’s.

Say you buy that home you’ve had your eye on, but you don’t do it until next year. You can expect to pay an extra $89.44 monthly—around the same cost as your daily coffee or weekly sushi. Per year, you’re looking at $1,073.28—around the same cost as a cushy weekend getaway or the balance on those credit card statements.

Within 30 years? You’ll be paying an extra $32, 198—and when it comes to other ways we’d rather use that money, we can think of about a thousand.

Don’t Wait to Buy Your New Home

If you’re on the fence about buying, just know: waiting until next year is going to cost you big. About $32,000 big. Don’t put off buying your Raleigh home—let Linda Craft & Team REALTORS® help you get started today.

Browse our buying guides and resources, narrow down your options with our specialized search tool, and give us a call to start scheduling showings today!

Is Moving in with Your Family the Latest Real Estate Trend?

Moving back in with your parents after a few years? You’re certainly not the only one!

Maybe your loved ones are growing older, and you want to spend more time with them, or they need a little extra help around the house. Maybe finances are tight, and you’re saving up for your own place.

Whatever your reasoning may be, multigenerational households are on the rise—and they provide some major benefits.

The Basics of Multigenerational Housing

A grandmother, grandson, and daughter sitting by the water.

The only qualification for a home to be multigenerational is, well, there’s more than one generation under the roof—whether it’s parents and adult children, adult grandkids and their grandparents, or any other combination.

Until recently, multigenerational households hadn’t been popular—or even common—since the 1950s, when around 21% of the population lived in a multigenerational home. That number continued to tick down over the years, but as of 2009, it’s been on the rise.

Currently, around 20% of the population lives in a multigenerational home, making it the second-highest percentage in recent history!

Reasons Behind Multigenerational Housing

Grandparents holding their grandchildren.

There are several major reasons why people have started moving back in with older family members. The most common reason is to take care of aging parents (26%), closely followed by spending time with parents in general (14%). Previously, adults ages 85 and older were most likely to live in multigenerational homes. Now, the title goes to young adults ages 25 to 29.

Additionally, growing diversity may play a part in those numbers. According to the Pew analysis, Asian and Hispanic populations—both of which have grown rapidly—are more likely than others to live in multigenerational homes, coming in at 29% and 27% of the population, respectively.

Lastly, student loan debt might be a big factor in multigenerational homes. For people ages 22 to 35, 83% blame their student loans for preventing home ownership. Seeing as how the average borrower owes over $30,000, they might be onto something!

The Surprising Benefits

A daughter and mother sitting on a park bench.

Not only do multigenerational households make financial sense for many people, they also boast a number of benefits. According to a study from the University of Oxford, children who grow up close to their grandparents often have fewer emotional and behavioral problems and can cope with traumatic events better. Also, researchers from Boston College found that when adult grandkids have close bonds with their grandparents, both groups report reduced depressive symptoms.

Understanding the benefits helps put into perspective why a staggering 41% of Americans are now in the market to buy a multigenerational home!

Linda Craft on Multigenerational Housing

Find Your Multigenerational Home in Raleigh

Raleigh has a wide variety of large, private homes for sale, perfect for multigenerational housing. If you’re looking to make the move with a few family members, then Linda Craft & Team REALTORS® is more than happy to help.

Explore all of your home-buying options in Raleigh, browse our helpful resources, and give us a call today to get started!

Breaking Down Housing Affordability: The Bottom Line for Buyers

As of late, there’s been a lot of buzz about home prices going up, and a fair amount of anxiety about what that means for buyers. While some headlines have been announcing an “affordability crisis,” that’s perhaps an over-sensationalization of current conditions.

If you’re worried about not being able to afford a home in the greater Raleigh area, here’s why you may not need to be as concerned as the headlines would lead you to believe.

What’s the Housing Affordability Index?

A man looking at charts and graphs on his laptop.

Every month, the National Association of Realtors crunches the numbers to create a Housing Affordability Index. This index measures how affordable it is for a family with a typical income to purchase a median-priced home, assuming a 20% percent down payment.

The index uses the number 100 as a starting point, and the higher the index gets, the more affordable homes are.

What the Index Has to Say

This year, the index is at 153, which is higher than it ever was from 1990 to 2008. The periods when the index was higher than it is today—2009 to 2017—were right on the heels of the housing crash, so the purchase of distressed and discounted properties was a frequent occurrence.

In fact, this year’s number is five points higher than last year’s, meaning 2019 has been more affordable for homebuyers than 2018!

Now is a Great Time to Buy

People receiving the keys to a home.

With low mortgage rates and affordable home prices, right now is a great time for buyers. If you’re in the market to purchase a home soon, you should take advantage of these favorable conditions while you can, and kick off your search process.

Find Your Dream Home in the Raleigh Area

With years of experience in Raleigh real estate, Linda Craft & Team REALTORS® is more than prepared to help you find your new home in Raleigh. Take a look at a few of the resources we have to offer, and give us a call when you’re ready to start seeing a few homes in person!

The Two Need-to-Know Factors for Pricing Your Home Right

The real estate market is in a unique situation right now. Mortgage rates are the lowest they’ve been in years—and expected to keep decreasing—and many people are left wondering what that means for home prices.

While housing prices are currently increasing at a slower rate than usual—coming in around 3.7%, compared to the average of 6 – 7% over the past few years—they’re still surpassing historic norms.

In a competitive and active market like Raleigh, knowing how to price your home accurately is more crucial than ever! Luckily, we can help. Here are the two biggest factors to keep in mind when pricing a home.

Consider the Appraisal Gap

A woman writing in a notebook.

The Home Price Perception Index checks in every month on the difference between homeowners’ estimates of their property and the appraiser’s evaluation. Over the past few months, that number has steadily ticked up. Last July the difference was around .25% lower than buyers expected, but it’s tripled since then, now standing at .78%.

While that may not seem like a major gap, that small percent can still mean thousands of dollars in difference come closing—money that sellers would have to make up for.

Avoid Price Cuts

A man glancing over a booklet in front of a window.

Not valuing your property accurately can create further problems down the road, as well. Realtor.com recently reported that price cuts in homes have increased 2% since last year. Again, 2% may not seem like a huge number, but 37 out of 50 of the largest US housing markets reflected this decrease—including Raleigh.

Oftentimes, there isn’t anything wrong with a home that gets a price reduction—it just started with the wrong price. If you hit the ground running with an accurate listing price, you won’t have to worry about knocking it down in the future! In fact, our selling tips can even help you net more for your home than usual.

List Your Home for the Right Price

Navigating market trends can be tricky, but luckily you don’t have to do it alone. At Linda Craft & Team REALTORS®, we have years of experience with buying and selling homes in Raleigh—meaning we know exactly how to handle the ups and downs of the market.

Learn more about what we offer our sellers, get an accurate price for your home, and give us a call when you’re ready to list!