Buyer Demand is Growing—Here’s How You Can Take Advantage of It

Typically fall—and especially late fall—isn’t an active time for the housing market. Buyers slow down around the holidays, fewer sellers list their homes on the market, and there’s a predictable lull before the New Year.

But this year, that’s not the case. In fact, buyer demand has grown in every region of the country, with the South in particular boasting the second-highest percentage of increased buyer traffic! Here’s how the numbers break down, and how you can take advantage of it as a seller.

Buyer Demand is Up

An agent leading buyers on a tour of homes during the late fall, a period of high buyer demand.

For the second month in a row, buyer interest is up in every region of the nation, including the Midwest, the South, the Northeast, and the West. This is likely largely due to low mortgage rates that have been present for most of the year, which makes buying in general more attractive and affordable.

Here in the South, we’ve generated the second-highest level of year-over-year buyer traffic growth, coming in at 6.4%—the largest jump in activity since last spring! The Western U.S. dominated the race at 8.9%, while the Midwest was lagging, but still in the game, with a .8% growth. Nationwide, the activity increase averaged out to 4.6%! For late fall and winter sellers, this is fantastic news

Buyers are Motivated

Home buyers on a tour of homes for sale.

One of the best things about selling during this time of the year? You won’t have to deal with buyers who are causally shopping. Instead, you can expect that most people out hunting for homes are hoping to move in before the new year—which works in your favor.

Since buyers will be on a timeline, they’re less likely to want long, drawn out negotiations. While they will probably be a little pickier about the home they choose, that just means that you have even more leverage—inventory is low, and if they walk away from your home, it could take them weeks to find another that they like.

Competition is Low

An aerial view of homes.

While spring and summer typically boast higher prices and more activity, that also means that other sellers are looking to capitalize on those benefits, as well. But in late fall and winter, seller activity takes a dramatic dip—and the limited listings on the market suddenly become much more attractive for motivated buyers.

There will still be other homes on the market, however, so don’t take this as an excuse to slack off on staging or marketing. In fact, staging and marketing are even more important during this time of year, since buyers are more selective in the homes they choose to tour!

Want to Bring Buyers to Your Front Door?

Linda Craft & Team, REALTORS® can help. We have over 350 years of combined experience, which makes us perfectly suited to ensure that your home sells not only quickly, but also for the highest price possible.

Want to add your home to our list of over 10,000 successful sales? Take some time to browse our resources, learn more about what we have to offer our clients, and give us a call when you’re ready to take the next steps.

The Numbers Are in… and Now’s a Great Time to Sell

This year’s real estate market has been shattering all sorts of expectations—and the latest numbers are no exception. While you might think that spring and summer are the most profitable seasons for selling, this fall has the potential to prove you wrong!

Here are the highlights from the  National Association of Realtors’ latest home-selling report.

Buyer’s Market vs. Seller’s Market

A "For Sale" sign in the front yard of a home.

Before we dig into the numbers, it’s important to provide a little context as to what they mean.

Buyer’s and seller’s markets are primarily determined by the amount of inventory available. If there’s less than 6 months’ worth of homes for sale, then prices will go up, leading to a seller’s market. On the other hand, when inventory tops 7 months, price tend to depreciate and the market swings in the favor of buyers.

With that in mind, let’s get to the numbers!

Sales vs. Inventory

A key in front of a miniature model of a home.

While sales have gone up, the most important takeaway from the report is the inventory. At the end of August, the total housing inventory sunk by 2.6% to 1.86 million homes for sale.

Unsold inventory is lower than the 4.3 month figure recorded last August, which represents a 4.1 month supply based on the current sales pace. With increased demand and limited supply, sellers are benefitting in major ways—namely, price increases.

Why the Increase in Buyer Activity?

People shaking hands over a real estate transaction.

Typically, buying slows down during the fall and winter months, but with mortgage rates remaining at near-record lows, it’s been hard to resist taking advantage of them. In fact, The Existing Home Sales Report also shows that 49% of properties were on the market for less than a month when they were sold.

The bottom line? If you’re planning on selling, now’s the perfect time to capitalize on ready, willing, and able buyers—and likely for a better price than usual.

List Your Home with Linda Craft & Team REALTORS®

Contrary to popular belief, you don’t have to put off your home-selling plans until the spring or summer—the last few months of the year are shaping up to make for a stellar seller’s market.

Want to take advantage of these favorable conditions and sell your home before the end of the year? Then let Linda Craft & Team, REALTORS® help. With hundreds of years of combined local experience, we have the resources, expertise, and skill-set to ensure that your property sells for top dollar! Whenever you’re ready to get started, we’re just a phone call away.

Find Out Why More Than Half of Buyers are Wrong About Down Payments

True or false: if you’re buying a home, you need to have at least a 20% down payment? If you answered true, you aren’t alone—so did 62% of Americans.

But in reality, that couldn’t be further from the truth—and you don’t have put off your home-buying dreams just because you can’t come up with 20% down!

While a 20% down payment will help you avoid private mortgage insurance (PMI), it isn’t some sort of home-buying hurdle that you must clear in order to buy. In fact, it’s far from the most common amount that U.S. buyers put down!

Here’s the truth about down payments—and why you shouldn’t let that 20% number prevent you from reaching your buying goals.

The Truth about Down Payments

A piggy bank standing against a white background.

According to NerdWallet’s 2019 Home Buyer Report, around 6 in 10 Americans think you need a 20% down payment in order to buy a house. Because of this, they also tend to think that it takes several years to come up with the necessary funds for buying.

Unfortunately, this way of thinking unnecessarily postpones plenty of people’s home-buying dreams!

The truth? The most common down payment amount—put forward by around 32% of buyers—was just 5% or less. Put that in terms of concrete amounts, and it translates to just $7,500 on a $150,000 home or $15,000 on a $300,000 home.

Other Common Down Payment Amounts

A single dollar bill sitting on a wooden surface.

While 5% or less is the most common down payment amount, it’s still just one of the many options that buyers choose. Here’s how the rest of the numbers break down:

  • 16% of buyers put down 6 – 10%
  • 23% of buyers put down 11 – 20%
  • 18% of buyers put down more than 20%
  • 10% of buyers bought their home outright

A 20% down payment is a great goal, but you don’t have to feel locked into that amount! Instead, consider how much money you’d feel comfortable with putting down, then work from there.

Buyers are Optimistic

A woman packing up her home and writing on a cardboard box.

Despite prevailing misconceptions about down payments, buyers are still feeling optimistic about the market. Around 42% of Americans feel better about their home-buying prospects this year, which is up almost 20% from last year.

Additionally, 44% of people say that the current economic and political conditions make them more likely to buy in the next year, which is around a 10% increase from last year.

Long story short? Now’s a great time to buy!

Find Your Dream Triangle Home

Buying a home is major step, so it’s important that you have trusted and experienced professionals on your side. At Linda Craft & Team REALTORS®, we have over 300 years of combined real estate experience, making us well-equipped to provide you with everything you need to find home-buying success.

Take some time to explore our resources for home-buyers, learn a little more about what our past clients have to say, and use our specialized search tool to narrow down your options. Once you’re ready to get started, we’d love to talk details!

The Biggest Reasons Why Homeowners are Happy… and Renters Aren’t

Coffee or tea? Cake or pie? Rent or buy? Life is full of big questions—some a little harder to answer than others. But in the case of renting versus buying, there are a few big reasons why ownership still wins the battle.

Thinking about making the jump from renting to owning? Here’s how your life might change.

Does Owning Make You Happier than Renting?

A family with pets.

That’s the big question posed by the most recent Bank of America Homebuyer Insights Report. The answer? A resounding yes. In fact, out of the modern homebuyers interviewed, 93% of respondents said that owning a home made them happier than renting, and 83% said that they would never go back to renting after owning.

It doesn’t just end with happiness, though—79% of homeowners believe that buying their own property has changed them for the better and 88% say it’s the best decision they’ve ever made.

On the flip side, according to the latest Zillow Housing Aspirations Report, 45% of renters regret not buying, with the biggest reasons being lack of customization opportunities, high rent payments, and lack of private outdoor space.

The Effects of Owning a Home

A grandmother and granddaughter.

You hear a lot about the financial equity of owning a home, but Bank of America’s survey sought out information on the “emotional” equity of ownership—which brought up some interesting numbers.

When asked if they viewed the home as a place to make memories or a financial investment, more than half of respondents chose the former. After buying, more than 76% of people pursued new hobbies—including landscaping and gardening, cooking and baking, and interior design.

And it’s not just the individuals: family relationships also benefited. Homeownership allowed 49% of respondents to entertain more often and 24% to bring the entire family under one roof.

Current Homeowners versus Prospective Homeowners

A house.

If you’re still on the fence about buying a home, consider these numbers:

  • Time spent pursuing hobbies
    • Current homeowners: 82%
    • Prospective homeowners: 63%
  • The quality of social life
    • Current homeowners: 78%
    • Prospective homeowners: 58%
  • Financial well-being
    • Current homeowners: 77%
    • Prospective homeowners: 42%
  • Quality of life overall
    • Current homeowners: 88%
    • Prospective homeowners: 70%

Ready to Become a Homeowner?

Owning a home comes with a myriad of benefits—both financial and emotional. If you’re ready to take the leap into homeowning, then congratulations!

At Linda Craft & Team REALTORS ®, we’re dedicated to not only finding you the best Triangle-area home for your wants and needs, but also ensuring that your journey is seamless and stress-free. Browse some of the resources we have to offer our buyers, and use our specialized home search tool to narrow down your options. Once you’re ready to get started, just give us a call!

6 Key Real Estate Graphs that You Need to See

No matter what capacity you’re entering the Triangle area real estate market in—whether it’s buying, selling, or investing—it’s crucial to be prepared. By knowing all of the latest numbers on mortgage rates, median sales price, and average days on the market, you can gain a major advantage over your competition!

Since we want to ensure that each and every one of our clients is well-equipped to reach their goals, we wanted to give you a quick snapshot at all of the trends you need to know.

Here are the top 6 real estate graphs that you should study up on.

The Strength of the Current Market

Key takeaways:

  • Keeping an eye on the current status of the housing market is one of the best ways to make powerful and confident decisions when buying or selling a home.
  • Mortgage rates remaining near historic lows and houses selling in an average of only 29 days are just two key elements driving the strength of today’s market.
  • With the national data shown here, make sure to also determine what’s happening in your local market so you are fully informed when you’re ready to make your next move.

Navigate the Market with Linda Craft & Team REALTORS®

At Linda Craft & Team REALTORS®, we know the ins and outs of the local and national real estate market—and we’re more than happy to share that knowledge with you. Whether you’re buying and looking for a little help or selling and hoping for top dollar, our track record of satisfied clients shows that we have what it takes to lead you to success.

Ready to get started? Feel free to give us a call!

Ace Your Real Estate Experience: A+ Reasons to Hire an Agent

In a lot of ways, buying and selling a home is like a test. You want to make sure you study up on all of the materials and have the right supplies before you get started.

But maybe most importantly, you want to make sure you have a teacher that can guide you through the material in a way that’s easy to understand and sets you up for success.

If you’re on the fence about hiring an agent to help you buy or sell your home, here are a few ways we can help you ace the process.

Decode Contracts

Paperwork.

During the real estate journey, you’re going to have to deal with a lot of paperwork. Sometimes it’ll be easy to understand, but other times, all of that jargon will probably look like a foreign language—especially if it’s your first time.

We’ll make sure you’ll know exactly what the papers say, why they’re necessary, and what they mean for you.

Breeze through Negotiations

People shaking hands across a table.

If you aren’t used to negotiating, then this step in buying or selling a home can be tough to handle—especially since you’ll be emotionally invested in the process.

When you work with an experienced realtor, we’ll act as a buffer between you and the other party. Not only will we work to get the best deal possible for your wants and needs, but we’ll also provide a level-headed perspective.

Understand Pricing

People pointing at a laptop screen.

If you’re selling your home, then finding the right price is the key to success. Price too low, and you won’t maximize your investment. Price too high, and you’ll miss out on buyers—and maybe even have to bring your price down.

Luckily, we can make sure you have the right price from the get-go. With our home valuation, we’ll take into account all of the local and national real estate trends, as well as any updates you’ve made to your property.

When it comes to buying, we can also help you figure out whether you’re getting a fair price for your purchase. The last thing you want to do is spend your hard-earned money on a home that isn’t worth it!

Translate Market Conditions

People in a meeting.

Did you know we’re in a period of nearly unprecedented drops in mortgage rates? That home prices have been steadily ticking up this year? That more and more millennial buyers are entering the market?

We know all about the intricate details that make up the market conditions. These details can help decide everything from how high you can price your home to how long it’ll sit on the market. Before you even list or start searching, we can breakdown what the current conditions mean for your experience.

Benefit from Experience

People getting keys to a home.

Above all, we know the ins and outs of buying and selling. We’ve been around the block more than a few times—after all, our team does have hundreds of years of combined experience in real estate—so we know exactly what it takes to be successful.

You might have other options when it comes to real estate professionals in the Triangle, but if you get to know a little more about our team, you’ll start to understand why our clients swear by us.

Don’t Flunk Your Real Estate Journey

If real estate is like a test, then we think we can help you ace it. At Linda Craft & Team REALTORS®, we have years of experience with buying and selling homes in Raleigh—meaning we know exactly how to handle whatever the market throws at us.

Take some time to explore our resources, whether you’re buying, selling, or just exploring the area, and give us a call when you’d like to get started!

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!

How A Daily Latte Affects Your Real Estate Goals

With summer on its way out and fall just around the corner, it’s prime latte season. Pumpkin spice, maple pecan, salted caramel—some of the best seasonal flavors make their debut!

While it’s great to treat yourself to a cup of coffee every now and then, those small expenses can really add up—especially if you’re pinching pennies for a down payment.

The Latte Method

A person making a latte.

Recently, Realtor.com put together a report titled “A Latte a Day Keeps Homeownership Away.”

By calculating the average down payment and median home price for a number of major US cities, the minds at Realtor.com were able to figure out just how much you need to save every day in order to afford a down payment within the next five years, representing that number with the equivalent amount of lattes.

The title may be a little pessimistic, but when you take a hard look at the numbers, the results are undeniable.

Daily Savings

A person reading a book and drinking a coffee.

The average price of a latte fluctuates based on city, but typically hovers within the $3.50 to $3.80 range. Depending on your usual coffee order, that number could be even higher—for example, a tall pumpkin spice latte comes in at $4.25.

Here’s what you’d need to save daily to afford a down payment within five years:

  • Atlanta: 1.6 lattes
    • Average down payment: $10,450
    • Median price: $335,436
    • Daily savings: $5.72
  • Chicago: 2.9 lattes
    • Average down payment: $19,580
    • Median price: $312,098
    • Daily savings: $10.72
  • New York: 6.8 lattes
    • Average down payment: $45,717
    • Median price: $564,500
    • Daily savings: $25.04

Raleigh falls on the lower end of the range, coming in at 2 lattes a day, or around $7.30. When you break your down payment into these smaller numbers, you can see just how much a coffee day affects your overall budget.

Buying Your First Home

A person holding up several bills.

Figuring out your finances while buying your first home is a daunting process, but not an impossible one. If you need help creating your five-year plan, Linda Craft & Team REALTORS® can help. Start things off by figuring out what your extra daily expense might be—whether it’s a latte, lunch, or an after-work drink—and cutting it back. Then, use our mortgage calculator to get some concrete numbers!

Need Some Budgeting Help?

Trust in the expertise of Linda Craft & Team REALTORS®. With over 300 years of combined real estate experience, we have what it takes to not only help you save up for your new home, but also successfully lead you through the in and outs of the buying process.

Take a look at some of our resources for buyers, browse a few homes on the market, and give us a call 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!

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!