Interest rates have been rising. Home price appreciation has moderated. Is the sky falling in the real estate market? According to experts, we are now in a residential market that is finding its new “normal”. The good news is that the Raleigh Triangle region continues to draw new business to the area, creating a heightened need for housing. The demand is still there, but buyers are not forced to make frantic decisions and have a little more time to look for the right home to suit their needs. Thus, we are working in a more balanced market where it is mutually beneficial for both sellers and buyers.
Over 60% of homeowners in the United States enjoy interest rates below 4%, slightly higher than today’s rates of 5-6%. While we are currently facing elevated interest rates, when compared to the historical average of 7.9%, they don’t seem unreasonable. Waiting for the interest rates to fall may actually work against buyers in the long run, as prices are expected to continue to rise, but at a more steady pace than what we saw over the past couple of years. Lenders are still advising buyers not to marry their interest rate. Instead, their advice is to find the home that is right for you now, and refinance later.
If you are selling your home today, you may not get what your neighbors got when they sold a year or so ago. But you will still get a fair price which will enable you to get into your next home. This is the new “Normal”.
The path to home buying is never a straight road. It is important to have a team of Real Estate professionals to guide you through the current market’s twists and turns so that you are able to make an educated decision on what path is right for you.