The current economy has proven to have surging mortgage rates despite an increase in the housing supply. In June 2022, the national median home listing price was up 16% from last year, and up 30% compared to the year prior. With the US on the brink of recession, and the real estate market nearing its highest numbers yet, home buyers are starting to pull out of the market. However, the job market and consumer spending are still strong.
When it comes to living arrangements, there are many great prospects in the US. Some of the best-ranked neighborhoods to live in are in North Carolina. It’s no shock that the Raleigh and Durham metro area is growing rapidly in popularity, but how is the real estate market doing? Below is a deeper look into the current real estate market and some concerns home buyers have in 2022.
Raleigh Real Estate Trends Right Now
Raleigh’s real estate market is booming right now despite the current complexity of the economy. Market research ranks the Raleigh/Durham area as number one in the US for home building prospects and number two for real estate prospects. Houses spend less than half the amount of time on the market right now in Raleigh than they did in 2021, and they sell for almost $5,000 less than the national median price. It’s safe to say many great things are happening in the real estate market right now for Raleigh, and the upcoming months look very promising.
Real estate trends show a high demand for housing in the Triangle, the metropolitan areas that include Raleigh, Durham, and Chapel Hill. US News also ranked Raleigh and Durham #6 in best places to live in the United States. Several factors can contribute to this, including it being the heart of North Carolina as the capital, proximity to world-class universities, and development opportunities. In addition to the area’s ample opportunities, the US Census reported a combined growth of 64,000 people in the last decade, meaning the population is increasing every year. All of these factors equate to higher demand for real estate.
Real Estate Pricing Trends
Residents in the Raleigh and Durham area spend up to $1,500 a month on housing, and on average, spend only 15% of their income on housing, compared to the nation’s 30%. Real estate prices are increasing because of this opportunity. People are still committing to buying a home in North Carolina, and are expected to continue to do so for the foreseeable future.
Due to inflation, as well as supply and demand, real estate prices will continue to increase. Real estate prices are influenced by social, political, and other economic factors, but market predictions will remain true: the population and the housing market will continue to grow in the Triangle and home values will increase by the end of the year.
Biggest Concerns of Home Buyers in 2022
Obviously, due to an increase in home value in 2022, home buyers have been backing out of contracts when looking closely at the fine line. Additionally, a lot of home buyers back out because of personal reasons, like job loss, family, or moving reasons. This is not just in North Carolina, but all around the country. What are some of the reasons home buyers are backing out?
The biggest fear of home buyers in 2022 is a pricing crash for homes. Home buyers are concerned that the housing market is headed in a direction to crash. This happened in 2008, but signs are pointing to it being highly unlikely of happening again. For one, the qualifiers to get a mortgage loan are way more strict, and buyers need to prove they can repay that debt. Additionally, regardless of the home buyers hesitating, the demand to purchase housing is still very prominent.
Another concern of home buyers is the possibility of losing their jobs and not being able to pay their mortgage. Due to the pandemic in 2020, this fear is very real. However, stricter lending practices are also there to help, and investing in a home could rescue you in this situation due to equity, assets, and savings. Regardless of the details, it’s natural for home buyers to reconsider during the home-buying process.
Should You Invest in a Home in 2022?
Even though the economy looks a bit scary right now, if you have the means, you should invest in a home. Buying and owning a home remains a smarter financial decision when compared to renting for many individuals and families. Owning a home gives you opportunities that renting does not.