Are Interest Rates Expected to Rise Over the Next Year?
Buying a home in Raleigh Durham has never been better when it comes to interest rates! The competition and lack of inventory…not so great! But the low interest rates have really made it more possible for people interested in buying a home in Raleigh or Durham!
So far this year, mortgage rates continue to hover around 3%, encouraging many hopeful homebuyers to enter the housing market. However, there’s a good chance rates will increase later this year and going into 2022, ultimately making it more expensive to borrow money for a home loan. Here’s a look at what several experts have to say. This will impact nationally and locally for those looking to buy a home in Raleigh Durham or elsewhere.
“Our long-term view for mortgage rates in 2021 is higher. As the economic outlook strengthens, thanks to progress against coronavirus and vaccines plus a dose of stimulus from the government, this pushes up expectations for economic growth . . . .”
“In 2021, I think rates will be similar or modestly higher . . . mortgage rates will continue to be historically favorable.”
“We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.”
If you’re planning to buy a home in Raleigh Durham, purchasing before mortgage interest rates rise may help you save significantly over the life of your home loan! We are Cindi & Zach Honeycutt, your favorite Raleigh Durham realtors! We would be honored to work alongside you on your raleigh durham home search!
The Honeycutts, Movil Realty, 919-730-0777 call or text anytime!
82,338 Great Reasons to Buy a Home Today
Taking a Look at the national & Raleigh Durham Real Estate Market
The financial benefits of buying a home as compared to renting one are always up for debate. However, one element of the equation is often ignored – the ability to build wealth as a homeowner.
Most experts are calling for home prices to continue appreciating over the next several years. The most recent Home Price Expectation Survey, a survey of over one hundred economists, real estate experts, and investment and market strategists, expects home appreciation to increase as follows:
- 2021: 6%
- 2022: 4.5%
- 2023: 4%
- 2024: 3.6%
- 2025: 3.5%
Using their annual projections, the graph below shows the equity build-up a purchaser could earn, using a $350,000 home as an example:A homeowner could increase their net worth by over $80,000 in five years. That’s an average of $16,000 annually. That number should be in any equation determining the financial benefits of owning a home compared to renting.
These are national averages. When we take a look at the Raleigh Durham real estate numbers, things look even better!
The average sales price of a Raleigh Durham home from 2020 to 2021 increased by 13% in just one year! From March 2019 to March of 2020, there was an increase of 5.6% in average sales price. If we don’t even take this years unprecedented bumber of 13%, year over year sales price increases are much higher than the national average. Meaning, your household wealth factor is greatly higher after only a couple of years!
Homeowners are going to make a substantial amount of money in home equity over the next five years buying a home in Raleigh Durham. If you’re ready to buy a home in the triangle, let’s connect so you can enjoy this great benefit as well!
We are Zach & Cindi Honeycutt. Raleigh Durham real estate agents working to give you the benefit of 2 agents instead of 1! Give us a call anytime for a no strings buying or selling consultation.
The Honeycutts, Realtors, Movil Realty, 919-730-0777
How to Be a Competitive Buyer in Today’s Raleigh Durham Housing Market
- With so few houses for sale today in the triangle, it’s important to be prepared when you’re ready to buy a home.
- Meeting with your lender early, knowing your must-haves and nice-to-haves, preparing for a bidding war, and keeping your emotions in check are all ways to gain confidence in the homebuying process. If you need a recommendation for a great lender, let us know! We’d be happy to help you get connected wiht someone who can provide you great service.
- If you’re looking for an expert guide to help you navigate today’s lightning-fast Raleigh Durham housing market, let’s connect today!
Zach and Cindi Honeycutt, Realtors, Movil Realty, 919-730-0777
Spring is almost here, and many are wondering what it will bring for the Raleigh Durham housing market. Even though the pandemic continues on, it’s certain to be very different from the spring we experienced at this time last year nationally. Here’s what a few industry experts have to say about the national housing market and how it will bloom this season.
“Despite early weakness, we expect to see new listings grow in March and April as they traditionally do heading into spring, and last year’s extraordinarily low new listings comparison point will mean year over year gains. One other potential bright spot for would-be homebuyers, new construction, which has risen at a year over year pace of 20% or more for the last few months, will provide additional for-sale inventory relief.”
“Some people will feel comfortable listing their home during the first half of 2021. Others will want to wait until the vaccines are widely distributed. This suggests more inventory will be for sale in late 2021 and into the spring selling season in 2022.”
“Since reaching a low point in January, mortgage rates have risen by more than 30 basis points… However, the rise in mortgage rates over the next couple of months is likely to be more muted in comparison to the last few weeks, and we expect a strong spring sales season.”
“As the housing market heads into the spring home buying season, the ongoing supply and demand imbalance all but assures more house price growth…Many find it hard to believe, but housing is actually undervalued in most markets and the gap between house-buying power and sale prices indicates there’s room for further house price growth in the months to come.”
The experts are very optimistic about the housing market right now! And we are optimistic about the local market here in Raleigh Durham. If you pressed pause on your real estate plans over the winter, let’s chat to determine how you can re-engage in the homebuying process this spring in the triangle! We would be honored to be your Raleigh Durham real estate agents! Call us or text us anytime, or connect with us on social media by searching @thehoneycuttrealtors
Zach and Cindi Honeycutt, Raleigh Durham Realtors, Movil Realty, 919-730-0777
Where Have All the Houses Gone?
In today’s housing market, it seems harder than ever to find a home to buy in the Raleigh Durham area and beyond. Before the health crisis hit us a year ago, there was already a shortage of homes for sale. When many homeowners delayed their plans to sell at the same time that more buyers aimed to take advantage of record-low mortgage rates and purchase a home, housing inventory dropped even further. Experts consider this to be the biggest challenge facing an otherwise hot market while buyers continue to compete for homes. As Danielle Hale, Chief Economist at realtor.com, explains:
“With buyers active in the market and seller participation lagging, homes are selling quickly andthe total number available for sale at any point in time continues to drop lower. In January as a whole, the number of for sale homes dropped below 600,000.”
Every month, realtor.com releases new data showing the year-over-year change in inventory of existing homes for sale. As you can see in the map below, nationwide, inventory is 42.6% lower than it was at this time last year:
Does this mean houses aren’t being put on the market for sale?
Not exactly. While there are fewer existing homes being listed right now, many homes are simply selling faster than they’re being counted as current inventory. The market is that competitive! It’s like when everyone was trying to find toilet paper to buy last spring and it was flying off the shelves faster than it could be stocked in the stores. That’s what’s happening in the housing market: homes are being listed for sale, but not at a rate that can keep up with heavy demand from competitive buyers. In the Raleigh Durham real estate market, it’s common for a home to only stay active for 2 or 3 days and sell over asking price with multiple offers. We have seen some homes receive over 30 offers!
In the same realtor.com report, Hale explains:
“Time on the market was 10 days faster than last year meaning that buyers still have to make decisions quickly in order to be successful. Today’s buyers have many tools to help them do that, including the ability to be notified as soon as homes meeting their search criteria hit the market. By tailoring search and notifications to the homes that are a solid match, buyers can act quickly and compete successfully in this faster-paced housing market.”
The Good News for Homeowners
The health crisis has been a major reason why potential sellers have held off this long, but as vaccines become more widely available, homeowners will start making their moves. Ali Wolf, Chief Economist at Zonda, confirms:
“Some people will feel comfortable listing their home during the first half of 2021. Others will want to wait until the vaccines are widely distributed.”
With more homeowners getting ready to sell later this year, putting your house on the market sooner rather than later is the best way to make sure your listing shines brighter than the rest.
When you’re ready to sell your house, you’ll likely want it to sell as quickly as possible, for the best price, and with little to no hassle. If you’re looking for these selling conditions, you’ll find them in today’s market. When demand is high and inventory is low, sellers have the ability to create optimal terms and timelines for the sale, making now an exceptional time to move.
Today’s housing market is a big win for sellers, but these conditions won’t last forever. If you’re in a position to sell your house now, you may not want to wait for your neighbors to do the same. Let’s connect to discuss how to sell your house safely so you’re able to benefit from today’s high demand and low inventory. We would be honored to be your Raleigh Durham realtors!
Are you connected with us on social media? We are most active on Instagram and we’d love you to be part of our world over there! You can find us on social media using @thehoneycuttrealtors
Until next time, have an awesome day!
Zach & Cindi Honeycutt, Realtors, Movil Realty, 919-730-0777
47% of New Buyers Surprised by How Affordable Homes Are Today- Raleigh Durham Real Estate Market Update
Headlines matter. Right now, it’s hard to read about real estate without seeing a headline that suggests homes have become unaffordable for most Americans. In reality, there’s hard evidence that shows how owning a home is more affordable than renting in most parts of the country, as record-low interest rates are keeping monthly mortgage payments about 23% lower than the typical payment of 20 years ago. Despite the facts, misleading headlines persist, and they impact how hopeful homebuyers perceive the market.
In a recent survey by realtor.com, home shoppers indicated they were surprised by what they could actually afford when buying their first home. In fact, 47% discovered their budget was larger than they expected. George Ratiu, Senior Economist at realtor.com, explains:
“For first-time buyers, especially, the drop in the 30-year mortgage rate…has provided unexpected leverage. Lower rates allowed many buyers to stretch and buy more expensive homes while keeping their monthly budget the same.”
So why do these negative headlines that cast doubt on affordability continue to exist?
Most analysts only look at two of the three elements that make up the affordability equation: price and income. It’s true that incomes haven’t kept up with the price of houses. However, affordability is about the cost of the home, not just the price. For that reason, mortgage rates, the third element of the affordability equation, are important to consider.
For example, here’s the typical mortgage payment for assorted dates going back to 2000, as calculated by CoreLogic:Outside of the housing crash (when short sales and foreclosures drove prices down), it’s more affordable to buy a home today when you consider all three elements of the affordability equation: price, income, and mortgage rate.
Whether you’re a first-time buyer or a move-up buyer, don’t let the headlines scare you away from your dream of homeownership. Instead, connect with mortgage and real estate professionals to determine what you can afford and what’s available at that price. Like almost half of the buyers in the survey, you may be pleasantly surprised.
Rising rent continues to soar year over year in Raleigh Durham. Why not keep your payments consistent by owning your own home? If you are interested in looking to buy a home in the Raleigh Durham area, let us know! We would be honored to partner with you as your trusted Raleigh Durham real estate agents.
Zach & Cindi Honeycutt, Raleigh Durham Realtors, Movil Realty., call or text anytime at 919-730-0777
Be sure to follow us on Facebook and Instagram @thehoneycuttrealtors
In today’s housing market, there are clear financial benefits to owning a home: increasing equity, the chance to build your net worth, and appreciating home values, just to name a few. If you’re a renter, it’s never too early to think about how homeownership can propel you toward a stronger future! Rent in the triangle area continues to rise year over year. Raleigh rent is averageing over 1200/month. That is your money paying someone else’s mortgage! Here’s a dive into three often-overlooked financial benefits of homeownership and how preparing for them now can steer you in the direction of greater financial security and savings.
1. You Won’t Always Have a Monthly Housing Payment
Personal finance advisor Dave Ramsey explains:
“Every payment brings you closer to owning the house. When you pay your rent, that money is spent. Gone. Bye. Not returning. But when you pay your mortgage, you work toward full ownership.”
As a homeowner, you can eventually eliminate the monthly payment you make on your house. That’s a huge win and a big factor in how homeownership can drive stability and savings in your life. As soon as you buy a home, your monthly housing costs begin to work for you as forced savings in the form of equity. When you build equity and grow your net worth, you can continue to reinvest those savings into your future, maybe even by buying that next dream home. The possibilities are truly endless.
2. Homeownership Is a Tax Break
One thing people who have never owned a home don’t always think about are the tax advantages of homeownership. The same article states:
“You have tax advantages. Many of the costs of owning a home—like property taxes—are tax deductible. And if you’re paying off a mortgage, you’ll get to count your mortgage interest as a deduction when you file your tax return.”
Whether you’re living in your first home or your fifth, it’s a huge financial advantage to have some tax relief tied to the interest you pay each year. It’s one thing you definitely don’t get when you’re renting. Be sure to work with a tax professional to get the best possible benefits on your annual return.
3. Monthly Housing Costs Are Predictable
A third benefit is the fact that monthly costs start to become more predictable with homeownership, something that doesn’t happen if you’re renting. Ramsey also notes:
“Rent rates will go up. Even if you found a killer deal in a hot area, inflation, competition, and rising property values will cause your rent to go up year after year.”
With a mortgage, you can keep your monthly housing costs relatively steady and predictable. Your monthly costs are most likely based on a fixed-rate mortgage, which allows you to budget your finances over a longer period of time. Rental prices have been skyrocketing since 2012, and with today’s low mortgage rates, it’s a great time to get more for your money when purchasing a home. If you want to lock-in your monthly payment at a low rate and have a solid understanding of what you’re going to spend in your mortgage payment each month, buying a home may be your best bet.
If you’re ready to start feeling the benefits of stability, savings, and predictability that come with owning a home in raleigh durham or the sorrounding areas, let’s connect to determine if buying sooner rather than later is right for you.
We are proud to be considered as your Raleigh Durham real estate agents!
Cindi & Zach Honeycutt, Raleigh Durham Realtors, Movil Realty, 919-730-0777