I get asked this question all the time. Why is now such a good time to buy? I hear that inventory is low and home prices are climbing, so shouldn't I wait to buy a new home until the market slows down and things return to normal? Why is it still such a good time to buy?
It is true, inventory is very low. According to the Triangle Multiple Listing Service or TMLS, there were 4,141 homes newly listed in the month of Febuary of 2020 and only 3,752 homes newly listed in Febuary of 2021. Thats a decrease in homes brought to the market year over year in February of -9.4%. Even more telling, there were only 7,511 total homes listed on the market in February of 2020 (that would include homes that were active prior to Febuary but were still available) but for the same time period this year, February 2021, there were only 2,759! Or, to the buyer who is looking for a home this Februruary, there were less than half as many homes on the market to chose from compared to last year, 63.3% fewer to be exact. Add to this the increase in average sales price between February 2020 ($319,051) and February 2021 ($352,170 or +10.4%) in the Triangle, and many buyers think, I'll just sit on the sidelines and wait until this crazy market calms down.
Finding a home now can be a little frustrating to say the least. Just when a home finally comes on the market that you think is perfect, there are multiple showings, often multiple offers, and while your trying to decide what to do, Bam! It goes under contract in a matter of days, sometimes even hours. Or maybe you've made offers on 5 houses already and you keep getting outbid! While all this may be true, believe it or not, now is NOT the time to sit on the sidelines and wait. You know why? Because interest rates are still incredibly and historically low!
One of the most important variables in making a new home affordable will be the interest rate of your mortgage. I know it seems like we've been talking about low interest rates for years, but todays interest rate market is truly unbelievable. According to Macrotrends.com, the 30 year fixed mortgage rate historical chart shows that as I write this post (April, 2021) rates are still lower than any other time in recent history. (You can view that chart Here.) These low interest rates mean your buying power has increased significantly from past years. Lower interest rates mean a lower monthly mortgage payment for the same size loan. It may also mean that although the home you want costs more now, in many cases your monthly mortgage payment may be the same or lower than it was last year when home prices were lower! For information for your specific situation, or to see what you can afford, contact your mortgage lender. They can run all your numbers for you and help you see why NOW IS A GOOD TIME TO BUY A HOME!
I wish I could tell you how long these low interest rates will last, but I can't. That's why I tell my clients, friemds and family, if a new home is in your future, it behooves you to find that home now. It will take a little bit of hard work, a little bit of patience and maybe a little bit of luck. If you don't want to rely on luck (and really who does?), I suggest you contact a hard working real estate agent that knows and understands this market. A good agent can help you formulate a plan and knows the best strategies for placing a winning offer in this sometimes crazy market. Believe it or not, it doesn't always come down to just the offered price. We can talk more about that in a later post, but for now, stop reading and start searching! Feel free to use my site
to start your home search, and please send me a text, email or call if you have any questions or you want to talk more about buying or selling a home. I love my job, and I'd love to go to work for you! Because ultimately I know, Its Your move!