The question that is top of mind for many, that either one whom owns real estate in the Raleigh area or one whom want own real estate in Raleigh, North Carolina area, is if the perceived real estate pivot is an opportunity or a challenge. According to Raleigh mortgage broker and Certified Mortgage Advisor Kevin Martini; “Right now there are 3 pivots in today’s housing market that could impact current homeowners and homebuyers. They are inventory, price growth and interest rates”.
INCREASE IN HOUSING INVENTORY
The number of houses available for sale in most markets across the U.S. and in Raleigh area has increased from the ultra-low levels of the past few years however there is still an undersupply of home for sale on the aggregate. The perception that we have shifted to a full blown buyer’s market is not correct. The slight increase in inventory and days-on-market has provided some homebuyers with negotiating power.
MORE TRADITIONAL HOUSE PRICE GROWTH
House values have risen by 20%+ per year in many markets throughout the pandemic. It is unrealistic to expect that this hose price growth will continue moving forward. The growth of house prices is slowing to more of a traditional pace versus the pandemic pace, house price growth is forecasted to normalize. Sure normalization means a deceleration form pandemic levels but declaration does not means depreciation.
FLUCTUATING HOME LOAN INTEREST RATES
Raleigh mortgage rates have risen by over 2% this year in response to high inflation and the removal of the Federal Reserve’s pandemic-era stimulus programs. This means that mortgage payments have increased for potential buyers however since there are higher weekly wages, the playing flied has remained level for keeping home affordable.
On the topic of affordability, check out episode 153 of the Martini Mortgage Podcast which highlights how higher home prices and fluctuating mortgage rates are not really impacting home affordability.
RALEIGH MORTGAGE BROKER AND CERTIFIED MORTGAGE ADVISOR KEVIN MARTINI
Even with the recent perceived pivot in the real estate arena, if you are still considering to make a move, it may be time to pick up your home search back up today. Rember, it should always be home loan first and then go find your home. If you have questions about the increase in housing inventory, traditional house price growth or about the fluctuating home loan interest rates contact Kevin Martini by dialing (919) 238-4934.