If you are looking for a home in the Raleigh area, low mortgage interest rates, pockets of undervalued homes, and an economy that is marching forward are all good reasons why you should be thinking about buying your new home right now.
But these reasons are just a few of the factors that determine what makes for a good time to buying your new home in Raleigh. Below are some additional elements to be aware of and take into consideration.
Compared to the 9.7 percent unemployment in January 2010, the Labor Department has recently announced that this rate is now below six percent. As more people successfully enter the workforce their could be a squeeze on available homes as more home buyers will compete for the number of homes on the market.
Inflation = Increased Home Value
When consumers’ prices rise across the board in an inflationary environment, your home often also becomes more valuable. The reason: you purchase your home at a fixed cost which is not affected by the rising prices surrounding it.
Slowing of House Price Increases
In 2013, the year-over-year home price gains increased by double digits. However, the median existing-home price in August 2014 was only 4.8% higher than in August 2013. The slowdown in pricing is an opportunity to buy a home before prices begin to again rise at double-digit rates.
Low Interest Rates
Mortgage interest rates are near historically low numbers, making this current period extremely affordable for home buyers looking to secure a mortgage to assist in buying a new home.
Millenials & the Opening of the Flood Gates
As the economic environment improves, we should see a huge wave of home buyers coming into the market. Forced to rent or move back in with their families, the Millenials are finally poised to begin entering the home buying fray. As they come alive, there will be a squeeze on available homes. And once this happens, home prices will have no choice but to increase.
While the house market is never completely predictable, ebbing and flowing according to the external elements, the present timing seems to present Raleigh home buyers with a number of favorable, aligned conditions. Historically low mortgage interest rates, a marked slowdown in the rise of home prices, and the calm before the Milennial storm are working in your favor right now.
When you are ready to begin searching for your new home, be sure to give Puck Realty a call at 919-842-5900 or send us an email!