Nobody truly knows what will happen in the future. However, when it comes to our real estate market, many reports are sending one unified message: Get ready for more of the same in Raleigh.
To start, home prices will continue to rise. Raleigh experienced 31% appreciation over the last year, making it the third fastest-growing city in the U.S. Obviously, prices won’t continue to climb at that rate, but there’s no doubt that values will increase more here than in most other areas of the country.
The low supply and high demand in your market won’t be changing, and it may get worse. New home builders can’t keep up with buyer demand, especially while experiencing supply chain issues. That shifts even more demand toward resale homes. Sellers are hesitant to list their homes because they’re worried about finding another home to purchase. On top of that, the steady influx of population into our area will further increase demand.
Interest rates will continue to rise as well. We saw unprecedented rates last year in the 2.5% range. While those rates are long gone, today’s rates are still historically low. They will increase closer to 4% and 5% in the next few years.
How does this affect you as a buyer? If possible, lock in a rate and purchase as soon as possible. Home prices and interest rates are only going to go up. They may be a bargain right now compared to what you will pay in a few years. If you’re a seller on the fence, reach out and learn about the strategies we’re using to help our sellers become top buyers.
If you have any other real estate-related questions, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
