We’ve been talking to NC First Time Homebuyers who are finally getting the message that NOW might be the “sweet spot” for buying a house. You maybe one of them – looking for a home with Character in Raleigh, not one of those Cookie Cutter neighborhoods… We think you should act quickly because while we have been in a really really low mortgage interest rate environment for over a year – that moment is past. If you take a look at home prices in Raleigh, low mortgage interest rates (yes they are STILL way freakin’ low compared to what your folks paid) and crazy increasing rents… You’ve never seen a better time in real estate history to purchase a home than right now.
Listen up NC First Time Home Buyers, here are 3 Great Reasons to buy a home in Raleigh NOW!
1. Supply Is Shrinking
Inventory in Metro Raleigh is shrinking each day. Last year we had pages and pages of FHA Foreclosed Homes available for you to choose from. Today we have 20 at the HUD Home Store . We have buyers who want to own a home and investors who want to rent homes competing in the market place. We’ve talked to dozens of First Time Home Buyers who are frustrated because they can’t find a house! There are tons of homeowners who borrowed or refinanced their homes and are waiting for the prices to increase a little more so they can afford to sell. All of this continues to deplete the number of homes for you to choose from in our real estate market.
2. Interest Rates Are Projected to Rise
Last week, the 30-year, fixed-rate mortgage rates posted its largest weekly increase since April 17, 1987. The Mortgage Bankers Association has projected that the 30-year mortgage interest rate will be 4.4% by the end of 2013. That is an increase of approximately one full point over current rates.
“Following Fed chief Bernanke’s remarks on June 19th about the possible timing of reduced bond purchases, Treasury bond yields jumped over the week and mortgage rates followed. He indicated that the Fed may moderate the pace of its buying later this year and end the purchases around the middle of 2014,” said Frank Nothaft, vice president and chief economist for Freddie Mac.
3. Price Increases Are on the Horizon
Prices in other parts of the country were expected to bounce along the bottom this winter. However, many pricing indices (examples: CoreLogic, FHFA, LPS, Case Shiller) are reporting that prices are continuing to rise. Actually Prices in Metro Denver are at a 5-year high. We’ve seen the bottom and are on the way up!