Raleigh Real Estate Blog - Page 2 of 81 - Triangle Area Real Estate Resources

April 15, 2020April 16, 2020

4 Ways to Maximize the Potential of Your Home’s Flex Space

Are you stuck at home and looking to take on a DIY project? If you have an extra room or a small nook that you just don’t know how to use, try tackling a mini home makeover! Here are some out-of-the-box ways to transform surplus flex space into a room that you’ll actually use…and will maybe even appeal to future buyers.

Here’s How to Take Advantage Your Flex Space

A flex space is an area in your home that can be customized and used in a number of different ways. They’re designed to be flexible (hence the name), and their function can be changed depending on the kind of room you need.

Looking for some inspiration to really spruce up your flex space? Here are a few ideas that won’t require much money or time.

Incorporate a home office

Have you recently started working from home? If so, it might be worth setting up your own home office. Even if you don’t have a separate room for your workspace, you can easily create a dedicated office with what you have.

If you really need a place to work, start by moving around some furniture or finding a quieter area in your house that doesn’t get used often. Remember—this is supposed to be an office you’ll want to spend time in, so be sure to add more than just a desk. Some great lighting, storage for supplies, and a comfy couch or task chair can tie the whole workspace together.

Create a home gym

Turning your flex space into a home gym is a practical way to show off its potential as a multi-use space. And if you’ve been slacking off on your workouts recently, having a dedicated active area can help you stay fit without leaving home.

To get started, try adding some mirrors, a wall-mounted weight rack, and exercise equipment that you’ll actually use (like resistance bands, a stability ball, or dumbbells). You can also incorporate a television or child-safe mats to easily turn your workout spot into a media room or play area!

Make the most of smaller spaces

Does your home have a smaller room or nook that doesn’t seem to serve a purpose? You can make the most of these awkward spaces by transforming them into whatever you want—the options really are endless here, so feel free to get creative.

If you aren’t sure where to start, just let your imagination run wild. If you love to read, consider creating a small library or reading nook where you can relax with your favorite book. Want to pick up a new skill? Having a dedicated hobby room makes it easy to spend time doing what you love. You can even design a designated space for your pets or a playroom for your children—it’s all up to you!

Add tons of storage

No matter what you choose to do with your flex area, it’s crucial to have enough storage space. You never know what you might use a particular room for in the future—but closets, shelving, and cabinets are always useful additions.

Even if a room doesn’t have a dedicated closet, you can create stylish storage by adding built-ins or tall bookcases. For a more minimalist look, wall mounted shelves are the way to go. You can even incorporate storage as part of your decor by investing in a trendy ottoman or a set of matching baskets.

Getting Ready to Sell?

If you’re thinking about listing your home and want to maximize the potential of your flex space, Linda Craft and Team would be happy to help! While it may be impossible to predict how current events will affect the Raleigh market, you can still sell quickly and for top dollar—just give us a call for all the details.

April 9, 2020April 2, 2020

How the Stock Market Drop Affects Home Values

With the housing market crash of 2008 still too close for comfort, it’s hard not to envision that this year’s stock market volatility will have the same impact on today’s market—sending home values tumbling. But economists and agents alike are quick to reassure that this isn’t like last time. So, here’s how the stock market drop actually affects home values.

The Stock Market Drop Probably Won’t Affect Home Values

how the stock market drop affects home values

During the last recession, the S&P 500 fell by over 50% from October 2007 to March 2009, and home values depreciated from 2007 through 2009—but unlike now, the economic slowdown was mostly caused by a collapsing real estate market, as well as overly lenient mortgage borrowing standards.

Today, our economic woes are caused by something vastly different and have no connection to real estate.

This could be akin to post-9/11 economy

Many experts say our current situation is much closer to the 2000 – 2002 period of the dot-com crash followed by 9/11. Like then, today’s economy is driven largely by the shock, fear, and anxiety of the general public; people avoiding crowds and staying home has put strain on the airline, leisure, hospitality, restaurant, and entertainment industries.

So… what happened in 2001?

The S&P 500 dropped 45% between September 2000 and October 2002. Home prices, however, actually appreciated during this time period. In fact, all three years saw over 6.5% annual home price appreciation, with 2002 climbing to 8.5% and 2000 nearing 9%.

How the Stock Market Drop Affects Home Values in 2020

It’s hard to say exactly how much our economy will be affected by the coronavirus outbreak, simply because we don’t know how long it will take to get the situation under control and open business and travel back up.

Real estate is slowing down a bit

Some things we can expect, though, are a general slowdown in home sales. Fewer and fewer buyers are venturing out to tour homes, and for many who’ve lost their jobs or main source of income, buying a home may have been pushed to the backburner for the time being.

That being said, real estate has been named an “essential business” for most states, so buying and selling continues even during the shelter-at-home orders and minor lockdowns.

Home values continue to rise in most US cities

Despite the overall slowdown in sales, home values are actually rising in most cities—and expected to continue doing so. However, it’s important to remember that, as life around us changes day to day, so too does the market.

2020 Is Not 2008

Times are uncertain and in constant flux. Maybe this will all be over by the end of April, maybe it will not. That being said, one thing we DO know is that 2020 is not 2008. There are a lot of key differences between now and then, and the reality is that a short-term economic slowdown like the one we’re experiencing now probably isn’t enough to crash the housing market.

The bottom line: The 2008 market crash and recession were caused by real estate—by overinflated prices and underqualified buyers. Today’s economic downturn is the result of the general population’s reaction to a natural disaster.

Today’s situation is not the same as that of 2008.

Questions About the Stock Market & Home Values?

If you’ve got any questions or concerns about how the stock market drop affects home values or your real estate goals, please do not hesitate to reach out to Linda Craft & Team. We are here for you during these unprecedented times; let us put our expertise to work for your benefit.

April 7, 2020April 7, 2020

Find Triangle Homes with Virtual Tours All in One Place!

With constantly changing restrictions and regulations on business, travel, and even everyday life, the way we buy, sell, and even see homes has changed drastically in the last few weeks. Fortunately, modern tech—like virtual tours—makes it easier than ever to get up close and personal… right from the comfort of your couch. And now, we’ve got a way for you to find all the Triangle homes with virtual tours in one spot.

What Is a Virtual Tour?

Let’s take a step back. What exactly is a “virtual tour”? For some of us, this might be a familiar term. But for many, the concept of virtually exploring a home might be a little foreign. There are a few different variations of virtual tours—some may be video, others still-frame—but both provide a cohesive representation of a home’s interior.

Virtual tours are incredibly beneficial in remote real estate because they simulate the in-person touring experience.

Why shop Triangle homes with virtual tours?

If you’re buying a home and, for whatever reason, are unable or unwilling to schedule an in-person showing, a virtual tour can help provide that in-depth look-around you just can’t get from images.

Virtual tours have become especially important during this public health crisis. Though real estate is considered an “essential business” here in the Triangle, it still presents a risk to both buyers and sellers to schedule an in-person tour.

Virtual tours can keep buyers safely at home while offering a similar “tour” experience.

How virtual tours benefit sellers

searching triangle homes with virtual tours

If you’re selling a home right now, having a virtual tour is pretty much a must! Not only will it offer you the ability to show your home without having to welcome anyone (and their germs!) inside, it’ll likely make your home a lot more appealing to buyers shopping from their homes.

In fact, according to research by Zillow, homes with virtual tours get 87% more views, are saved 50% more, and sell 10% faster than homes without virtual tours. And that was before the coronavirus outbreak.

Imagine how those numbers will change as real estate shifts more and more to being a virtual, online experience.

Linda Craft & Team Listings’ Virtual Tours

At Linda Craft & Team, we understand the importance of the virtual experience. We understood it before stay-at-home orders, business closings, and social restrictions. In fact, every single one of our listings features a professional-grade virtual tour—even though only about 1,600 of the 13,000 currently active listings in the Triangle have a virtual tour.

If you’re buying or selling in the Triangle, now more than ever, it pays to work with an agent who works with the market! Contact Linda Craft & Team today to learn more about how we can put our 350+ years of experience to work for you.

April 6, 2020April 1, 2020

Is Now a Good Time to Refinance My Home?

The past few weeks have brought a whirlwind of change to just about every aspect of daily life—business, work, play, and everything in between. In this time of upheaval, you might’ve noticed that mortgage interest rates have dropped… and dropped and dropped. And if you own a home, you may be considering whether now is a good time to refinance.

So… Is It a Good Time to Refinance?

A “good” or “bad” time to refinance really can’t be wrapped up in a blanket statement that applies to all homeowners. Instead, there are some factors that should be individually considered before you make a decision.

Here’s what to ask yourself if you’re considering refinancing.

Why do I want to refinance?

Understanding your reasons for refinancing can help you determine whether it’s a good idea. If you’re interested in reducing your payments, and your interest rate is higher than what’s currently being offered, it might be worth looking into.

You may also be curious as to whether you can shorten the life of your loan, say from a 30-year to a 15- or 20-year loan. You might also be considering a cash-out refinance, which would enable you to take the equity on your home and put it towards something else, like an investment property, business venture, or education.

How much will it cost me?

What many owners don’t realize is that refinancing comes with closing costs, just like the initial home purchase. Typically, total closing costs average about 2% – 4% of the balance of the loan—which can amount to several thousands of dollars.

Some lenders offer no-cost refinancing options… but typically, they expect to make up these costs elsewhere, like with a slightly higher interest rate.

How long will I wait?

Because current market conditions are so favorable (read: interest rates are low), many homeowners have been refinancing, so the process has slowed down a bit. In fact, over two times as many homeowners have refinanced than in previous years.

So.. is it worth it?

Unfortunately, we can’t answer this for you. It depends largely on your personal situation, including your current rates, the duration of your loan, the amount you currently owe, and whether you plan to move in the next handful of years. In short, you might need to do some thinking about your plans—and maybe break out a calculator, too.

Now Is a Good Time to Refinance… Maybe!

So the bottom line is that now could potentially be a good time to refinance, thanks to those low interest rates, but ultimately, as with many aspects of real estate, it depends on your personal situation.

Not sure whether refinancing is the right move for you or have other questions about buying or selling in Raleigh? Don’t hesitate to reach out to us. At Linda Craft & Team, we’re eager to put our combined 350+ years of experience to work for you.

April 1, 2020April 1, 2020

How COVID-19 Is Impacting Real Estate

If you’ve been thinking about buying or selling a home in the near future, the unprecedented events of the last few weeks might have left you feeling a bit uncertain. COVID-19 has undoubtedly affected all of our lives, but that doesn’t mean you need to press pause on your real estate dreams.

We want to set the record straight about how these changes to everyday life affect buyers, sellers, and agents…and how you can protect yourself while continuing to pursue your goals.

How Will COVID-19 Affect the Real Estate Market?

Our way of life has changed dramatically within the course of just a few weeks, and the real estate market has shifted, too. Have a few questions? It’s hard to predict what will happen in the future, but here’s what we know right now.

Expect some major market shifts

As we adjust to a new normal, it’s clear that COVID-19 will have a lasting impact on every industry in the country—including real estate. However, this doesn’t mean that investors aren’t still buying and selling homes. A recent survey by the National Association of Realtors shows that 61% of sellers plan to keep their houses on the market, and over half of buyers will continue to shop for a home.

Although we’ll likely see a reduced number of sales in the coming weeks and months, record-low interest rates and a continuously low supply of homes might help to prevent any drastic price drops. Many economists also believe that another housing market crash is unlikely due to new regulations and stricter mortgage qualifications.

Buying and Selling a Home During COVID-19

As of early April, agents are continuing to help their clients buy and sell homes—but you can expect to see some changes aimed at keeping everyone safe and healthy.

Essential Tips for Sellers

Selling a home during the COVID-19 outbreak is definitely uncharted territory, but as we’ve seen in the last few weeks, it’s not impossible. Many sellers and their agents have worked together to pioneer new marketing strategies…some of which might last even after life returns to normal. Before you start scheduling those virtual showings, here are some tips to consider.

Make sure you’re healthy

First and foremost, it’s crucial to ensure that every member of your household is healthy before and during the selling process. Alert your agent right away if you’re feeling sick so they can halt in-person showings.

Sanitize your home

As a seller, your main priority should be ensuring that your home is germ-free, especially before a showing. We recommend wiping down all surfaces with disinfectant wipes and sprays and offering hand sanitizer to potential buyers. Reduce unnecessary touching by pre-opening any doors, cabinets, or drawers and turning on all lights before a showing.

Capitalize on digital marketing

If you still plan on selling soon, have your agent use the latest digital marketing techniques to really showcase your listing. Open houses and showings might be out, but virtual tours and showings via video sharing platforms are in—and it’s important to capitalize on these techniques to draw in potential buyers.

Essential Tips for Buyers

Believe it or not, it’s still possible to buy a home during these uncertain times—and modern technology is making everything easier than you might expect. Here’s how to stay safe and healthy throughout the entire buying process.

Make sure you’re healthy

If you’re feeling ill, it’s important that you stay home, practice social distancing, and avoid any showings. However, you can still continue to tour homes virtually and chat with your agent via online meetings.

Use virtual homebuying technology

Thanks to new innovations, it’s easier than ever to explore listings from the comfort of your couch. If you don’t want to attend a showing, many agents provide in-depth virtual tours and personal walkthroughs through video platforms like FaceTime and Zoom.

It’s also possible to complete the entire closing process remotely. Chances are, most documents can be signed electronically, which adds another layer of convenience and safety. Some states even allow you to virtually notarize your paperwork!

Take extra precautions during in-person showings

Want to see a home in person before making an offer? If your agent still offers normal showings, there are a few extra steps you should take to keep yourself (and the sellers) safe. Carry hand sanitizer with you and try to refrain from touching any surfaces. This might be difficult, but it’s the easiest way to mitigate the spread of germs. If your community has a shelter-in-place order, you may have to postpone any in-person showings until restrictions are lifted.

Have More Questions?

As we navigate the changes inflicted upon the market by COVID-19, it’s crucial to consider your individual needs and follow local guidelines. Linda Craft &Team are constantly on the lookout for new ways to assist our clients, and we’re determined to protect your health and safety while helping you meet your goals. If you have any questions, please don’t hesitate to contact us and check out our virtual resources for more information.

March 31, 2020March 31, 2020

Resources for Grocery and Prescription Delivery

In the coming weeks, as the COVID-19 outbreak continues to unfold and develop, at-risk populations like seniors or those with preexisting conditions are encouraged to stay home and avoid public places whenever possible. But even if you aren’t part of those at-risk populations, you might be curious about the best ways to obtain essentials like groceries or prescriptions. Here are some Raleigh-area businesses offering grocery and prescription delivery.

Grocery and Prescription Delivery in the Raleigh Area

Many local businesses and organizations are offering services like grocery and prescription delivery, curbside grocery pickup, and more. Here are some of the main companies.

CVS

CVS is waiving charges for prescription delivery. It even allows for the addition of store items for delivery at no extra cost. Store items are also available for same-day delivery through Instacart.

Walgreens

Walgreens is providing free shipping on prescription refills and any other store products.

Carroll Pharmacy (Smithfield)

This local pharmacy is offering free delivery within their delivery area.

Davis Drug (Kenly)

This local pharmacy is offering free delivery within 10 miles of their store. Prescriptions may be delivered same-day if the order is placed before noon.

Falls River Pharmacy

Both prescription and over-the-counter items are being delivered free for Raleigh-area residents. They also have drive-through service.

Hayes Barton Pharmacy

Like Falls River Pharm, Hayes Barton offers free delivery for both prescription and OTC items to Raleigh-area residents. They also offer curbside pickup.

Health Park Pharmacy

Free delivery for OTC and prescription items is available to all Raleigh-area residents. There’s also curbside pickup.

HealthSmart Pharmacy (Wake Forest)

Free delivery is available to residents in Wake Forest and the surrounding area. Note: Their weekend hours are limited to Saturday 9am – 1pm. Call them for details at 919-569-0550.

HealthSmart Pharmacies

There are several HealthSmart Pharmacies in the area, and most offer free delivery within a 10 mile radius of their store.

Hillsborough Pharmacy and Nutrition

Hillsborough Pharmacy and Nutrition offers free prescription delivery. Hours are limited to Monday – Friday.

Aldi

Aldi has partnered with Instacart to offer grocery delivery, including free delivery on the first three orders of $35 or more with the coupon code “SHOPALDI20”.

Big Lots

Big Lots will bring your order to your car with curbside delivery.

Carlie C’s

Carlie C’s is offering free delivery to customers over age 65 for grocery orders over $100 purchased with the code “love65”. The code is good through June 30. Customers must live in their delivery area.

Costco

Costco has partnered with Instacart to offer same-day delivery (at a charge).

Food Lion

Food Lion offers both delivery and pickup—each for a small fee. Fees vary based on order size and request window.

Dollar General

Dollar General lets seniors shop during the first hour of business to create a less crowded, safer, and more socially distanced shopping experience.

Harris Teeter

Harris Teeter is offering same-day delivery and pickup. There’s a small shopping fee for both orders, plus two tiers of delivery fee based on the size of the order.

Lidl

Lidl offers grocery delivery through Shipt (membership required).

Lowes Foods

Lowes offers online ordering and grocery pickup. There’s either a one-time fee per order or a one-time annual membership fee.

Publix

Publix offers both delivery and curbside pickup. Both are managed through Instacart.

Sam’s Club

Sam’s has developed a new concierge service for seniors and at-risk members. During designated hours (7am – 9am on Tuesdays and Thursdays), members can place their orders from their cars, and a Sam’s Club associate will collect and deliver the items.

Target

Target offers grocery delivery through Script (membership required). They also designate the first hour of business every Wednesday to at-risk populations.

Walmart

Walmart offers free curbside grocery pickup.

Wegmans

Wegmans offers curbside pickup and delivery through Instacart.

Additional Services & Organizations Offering Aid

There are several organizations in the Triangle area offering additional services and support for at-risk populations with financial need. Here are some offering food and grocery assistance.

Community of Hope Ministries (Garner)

Community of Hope Ministries offers a drive-through food pantry during specific hours. No sign-up is required and there is no associated cost.

Food Bank of Central & Eastern North Carolina

This food bank’s Food Finder allows those in need to enter a zip code to show the closest food pantry locations and hours of operation.

The Center for Volunteer Caregiving in Wake County

Volunteers with the organization work with at-risk individuals to coordinate grocery or pharmacy shopping and pickup. Services are free, and additional assistance, like light housekeeping or visiting, may also be available.

Looking for Assistance in the Triangle?

Here at Linda Craft & Team, we’re here for you during this uncertain time. If you have any questions or are in need of any type of assistance, please do not hesitate to reach out to us at any time.

March 27, 2020March 17, 2020

Will 2020 Be the Year of Luxury Real Estate?

Luxury homes weren’t seeing too much interest at the end of 2018. The US real estate market was comprised heavily of first-time buyers searching for lower-priced homes, and the luxury market slowed considerably. But a shift in the market and buyer interest shows that luxury real estate might be poised to make a comeback in 2020.

What Is Luxury Real Estate?

From a general real estate standpoint, homes priced in the top 25% of a price range for a particular area are considered “premium” or “luxury” homes. That being said, the definition of luxury living will vary from city to city, region to region, and even buyer to buyer.

Here in the Triangle, that “premium” price tag could even start as low as $750,000.

Luxury is back on the market

According to the Institute for Luxury Home Marketing (ILHM), there has been a definite upswing in both luxury single-family and condo sales, so it’s a good time to make a move in the high-end price range.

It’s a Smart Time to Enter the Luxury Market

If you’ve been considering investing in a high-end property or trading your old home for something with a bit more space, now is the time! High inventory and favorable buying conditions make 2020 a fantastic year to invest in premium real estate.

Interest rates are low

In fact, interest rates aren’t just low; they’re near historically low—which means it’s a pretty ideal time to invest in any kind of real estate. At any price point, you will ultimately be paying less for your loan when rates are this low. And when you’re working in a luxury price range, that translates to a lot of money.

Inventory is high

Lower-priced homes have been in high demand for some time now, which has led to a shortage in inventory. The high-end market, however, is not experiencing this same deficit, thanks, in part, to the market slowdowns of 2018 and early 2019. For buyers, this means that despite the increasing competition, there are still plenty of choices!

Buying power & affordability are increasing

Despite a steady rise in home values over the course of the last handful of years (great news for homeowners!), homebuying is actually becoming more affordable for many buyers! How is this possible? Well, for one, lower interest rates make mortgages more accessible. And for another, an increase in average wages gives buyers more room in their budgets to spend on housing.

Luxury Real Estate in Smaller Cities

Not only is luxury investing making a comeback, it’s growing in popularity in smaller cities, too. Because prices in smaller cities tend to be more affordable, buyers are able to find better deals and purchase more house at the same cost.

Luxury investing in Raleigh

Raleigh is a great example of where small-city luxury real estate is really flourishing. Affluent communities like North Raleigh, Cary, Chapel Hill, and Wake Forest have strong, yet affordable, high-end markets with price tags starting in the low to mid $700s and climbing into the multi-millions.

One of the great things about investing in the Triangle is how much value you really will get, especially compared to larger markets. A million dollars, for example, might get you a lakefront estate or a brand-new ultramodern condo in Cameron Village. It might get you a historic stone manor or backyard tennis courts or 60+ acres of breathtaking countryside complete with horse facilities. There’s a lot out here… and the prices are fantastic.

Ready to Get in on the Luxury Market?

If you’re thinking of investing in a luxury home in Raleigh or the Triangle, Linda Craft & Team is here to help! Our partnership with Luxe Global, coupled with our 350+ years of combined experience, gives us a highly competitive edge—and you an unparalleled investment experience. Contact us today to learn more or get started.

March 23, 2020March 18, 2020

Another Housing Market Crash WON’T Happen. Here’s Why.

There’s a lot of uncertainty hanging over us—the coronavirus closing businesses left and right, stock market volatility sending stocks plummeting, the Fed cutting interest rates to near nothing—but we want to reassure you that another housing market crash is not on the horizon.

Here’s Why We Aren’t In Store for a Housing Market Crash

After the major real estate market crash of 2008, it’s easy for buyers and owners alike to feel more than a little wary. Buying at the wrong time can be financially and emotionally devastating, so it’s not surprising that more than a few people are rethinking buying in this uncertain time.

But a housing market crash isn’t inevitable. Here’s why.

Mortgage standards are entirely different

One of the reasons the housing market soared in the mid 2000s (and then inevitably crashed) was that it was incredibly easy to qualify for a mortgage. In fact, the Mortgage Credit Availability Index shows that it was almost five times easier to get a mortgage in the 2006 – 2008 range than it is today.

In translation: During the housing bubble, people who should not have qualified for a mortgage at all were buying homes they could not realistically afford.

Prices aren’t skyrocketing

Over the course of the last six years, housing values have increased slowly and steadily over time—at an average rate of about 5%. Compare that to the soaring prices of the housing bubble—where rates soared to over 12%—and you’ll see that prices aren’t skyrocketing out of control as they did back in the early 2000s.

There’s an inventory shortage, not surplus

A “normal” market has approximately six months of inventory (homes for sale). Anything more than that is considered a surplus and will cause demand to lower and prices to drop. In 2007, the amount of inventory soared to over eight months—which caused prices to fall drastically. Today, however, we face the opposite scenario, with only three months’ supply of homes for sale.

Housing is much more affordable

Affordability of real estate is about more than price. The income of the purchaser and the available mortgage rates must also be taken into account to determine how affordable homes are. Prior to the market crash, prices were astronomically high, income was low, and mortgage rates sat at over 6%—making housing very unaffordable.

In contrast, today’s housing is significantly more affordable; though prices are still high, wages are also high and mortgage rates have decreased to as low as 3.5%. That means you’ll pay less for your mortgage and put less of your income towards it.

People have more equity

During the housing bubble, many owners withdrew equity on their homes as soon as it was available. When the market crashed and home values fell, owners found themselves instantaneously in debt. Many foreclosed on their homes, further worsening home values with a high number of discounted foreclosures and short sales.

This time around, however, owners are exercising a little more caution. In fact, homeowners have cashed out over $500 billion LESS than before.

The Bottom Line: A Housing Crash Isn’t Happening

Economic conditions aren’t the same as they were back in 2008, and buyers and owners are much smarter (partially thanks to hard-earned lessons) than during the housing market crash. These may be uncertain times, but real estate will stay strong regardless.

If you have any questions about how current conditions affect your homeownership, purchase, or sale, Linda Craft and Team is here to chat and share our expert options and advice.

March 18, 2020March 11, 2020

50 Years of Homebuying: A Look at Interest Rates Over Time

We all know that home prices change over time. It’s one of the reasons we invest in real estate in the first place—because we know that a home you buy today is likely going to be worth a lot more tomorrow! But did you know that interest rates have also changed a lot over time… and it’s not how you might think!

Interest Rates Over Time Might Surprise You!

If you think your parents or grandparents probably had much lower interest rates than you will, you’re actually pretty far from the truth. Interest rates have fluctuated a lot over the past 50 years, and definitely not how you might think.

The 70s saw sky-high rates

You don’t have to know what today’s rates are to know that interest rates of 8.86% are pretty high. That’s high for a car loan… but it’s also sky-high for a house. One of the reasons for these astronomical rates was inflation, which began rising in the early to mid 70s.

… But the 80s were even higher

Inflation continued to climb into the 80s, and lenders raised rates to combat the economy’s flagrant boom. Rates hovered around 12.7%… with highs climbing to over 18% in 1981!

Rates dropped in the 90s… a little

The interest rate hike did improve inflation, and the economy eventually leveled off. In the 90s, rates fell back into the 8% range—still high, but definitely more manageable than the rates of the 80s.

Rates continued to fall into the 2000s

From the 90s into the 2000s, rates continued to drop into the low 6% range, heading into the housing boom prior to the 2008 market drop. During this time, the combination of low interest rates and low home prices lead to a housing “bubble” that encouraged risky home buying, and ultimately lead to the 2008 housing crisis. Following the collapse, interest rates climbed again, though not significantly.

The 2010s saw all-time historic lows

historic lows of interest rates over time

After the 2008 collapse, the real estate market slowed considerably. Many previous owners had foreclosed on their homes, while others were forced into short sales (selling for less than they owed), and once-likely buyers were wary of trapping themselves into a similar scenario.

To bolster the market and encourage buying, the Federal Reserve continued to lower rates until they reached an all-time historic low of 3.31% in 2012. This did the trick, and the market started to pick back back up… until 2016 once again saw a booming and robust housing industry.

Today’s rates are almost historically low again!

Rates in the late 2010s began a climb upwards from the 2012 low, with rates in 2018 hitting highs close to 5%. Experts predicted 2019 would see rates over 5%, but in a surprising twist, rates actually fell!

Now, even with mortgage rates expected to increase a bit over the next year, they’re currently hovering near a five-decade low. In fact, rates are just 3.49% today… which approaches the all-time low of 3.31%. So while your home likely is going to cost you more than your parents’ or grandparents’ homes, your loan is going to cost you significantly less… and that’s a pretty big deal.

Interest Rates Are a Big Deal!

Just how much do interest rates matter? Let’s say that your parents bought a $100,000 home at the 1981 peak rate of 18.63%, and you buy your home—also $100,000—at the 3.49% rate of 2020. Your parents would be paying $1,558 a month for their home… while your mortgage payments would be just $448. That’s $1,110 LESS a month, $13,320 LESS a year, and $399,600 LESS over your 30 year loan.

That’s a tremendous difference. Interest. Rates. Matter. Big time.

Want to Buy a Home in Raleigh While Rates Are Low?

Ready to buy while the market is in your favor? Then it’s time to contact Linda Craft & Team and let us put our 350+ years of real estate experience to work for YOU! First home? Tenth home? Doesn’t matter; we’ll work hard to make sure you find the perfect home in just the right spot.

March 15, 2020March 16, 2020

5 Ways to Freshen Up Your Decor for Spring

The days are getting longer, temperatures are starting to climb, and the trees are finally starting to turn green again. As spring approaches, it’s a great time to freshen up your decor and add a splash of color to your space. Looking for some quick, easy, and affordable design tips? Here are a few ways to welcome spring into your home…especially if you’re thinking about selling in the next few months!

Our Top Spring Decor Tips

Do Some Spring Cleaning

Before you make any decor updates, it’s crucial to get every inch of your home looking pristine. Spring cleaning involves more than just a little scrubbing—you should take some time to reorganize, too!

If you’re feeling a little overwhelmed, just start by working room by room and removing any clutter. It may also be beneficial to make “keep,” “donate,” and “throw away” piles to ensure that everything stays in order. After you’ve freed up some space, break out the cleaning supplies and banish any dust, cobwebs, and grime. Don’t have time to do it all yourself? Consider hiring a professional cleaner or organizer.

Incorporate a Little Greenery

Want to breathe new life into your home? Take some inspiration from nature! Adding freshly-cut or potted flowers and greenery can turn your house into a home—and if you’re selling, your buyers might appreciate the extra pop of color.

If you’re not sure where to start, consider picking up a ready-made bouquet or some low-maintenance houseplants for your living room, kitchen, or bedroom. Placing them in trendy planters and decorative vases can create an added level of style. For a final splash of spring, try hanging a wreath of seasonal blossoms or greenery on your front door to welcome guests inside.

Add New Accessories

Take some time to get rid of your winter accessories and usher in a brand-new season. Light and bright colors, linens, textured pottery, and raw wood accents are all on-trend this spring, and adding these small details can really elevate your home’s style.

Start by incorporating some new accent pillows and paring down your current accessories in favor of a more curated collection. This is particularly important if you’re getting ready to sell; you’ll want to depersonalize your space, but it should still feel like a home. Hanging some different art on your walls can also help you transition to spring—we recommend floral prints or paintings.

Freshen Up with Inviting Scents

Is your home smelling a little musty after a long winter? Throw open the windows and freshen up with some invigorating scents…especially if you’ll be inviting buyers into your home.

Before you integrate spring fragrances, however, be sure to eliminate any unpleasant odors first. Once you’ve deodorized, swap out those holiday candles in favor of some fresher aromas. Lavender, fresh cotton, and lemongrass are all great choices, and they won’t be too overpowering.

Don’t Neglect Your Outdoor Space!

As you prep for the warmer months ahead, the outside of your home matters just as much as the inside. Your outdoor space can really make or break a sale during the spring, as buyers are probably ready to spend some time outside. Even if you aren’t selling soon, your yard, porch, deck, or patio could probably use a little extra attention.

Brush off the winter blues by sweeping away any debris, addressing brown spots on your lawn, and getting rid of any dead or wilting plants. You might also want to incorporate some new outdoor furniture on your deck or patio to show off its potential.

Ready Sell Your Home This Spring?

If you’re looking for spring decorating tips because you’re planning on selling your home soon, we’d love to help you navigate every step of the process. Feel free to reach out to Linda Craft and Team, REALTORS® for more staging strategies and seller tips—we can even help you list your Raleigh home with just a few clicks!