One reason it's a great time to buy a home in Raleigh here in 2015 is the low interest rates. That's one of the more obvious reasons buying a home today makes a lot of sense. Buying Raleigh real estate offers many other benefits for buyers, that far outweigh whether or not it's a good time to buy...
Earlier this week we wrote an article on whether or not it makes sense to buy real estate at a young age. A recent North Carolina State University graduate reached out and asked:
Loved your article on buying real estate when you’re young. I’m a first-time home buyer and was wondering if it still makes sense to buy in this market which seems to favor sellers? I’ve heard mixed opinions, what do you think?” - Kevin
I absolutely love the opportunity to engage with people and secondly it gives meaning to the things I write, because I’m sure Kevin isn’t the only one with this question.
Buying a home is always a good decision as long as you have the right plan. Having a top local Real Estate Agent helping you will go a long way during your home search. You can buy real estate at a discount in any market, including a market that is geared towards sellers, it just takes more effort in that scenario.So is it a good idea to Buy a Home in Raleigh?
Homes for Sale in Raleigh have seen some significant appreciation over the last 24 months, so homes aren’t exactly at the discount they once were. With that being said, there are still good purchases to be made no matter the market conditions, how low housing inventory levels are, or how large the buying pool is. Find a top local Real Estate Agent to help you!
One of the best things about buying a home today is the low interest rates. We decided to take a look at 8 other factors that contribute to making it a great time to be a buyer, no matter the market!
8 Reasons to Buy a Home in General no Matter the Market
Appreciation of Raleigh Real Estate
One of the best reasons to buy a home in Raleigh right now is that the economy is really strong. The population is growing faster than any other city in the U.S. since 2000 and it’s not expected to slow down. Between 2015 and 2030 the population in Raleigh is expected to grow by 50%! That means the City will be adding another 225,000 residents over the course of 15 years. That breaks down to 15,000 new Raleigh residents each year.
Builders already have a hard enough time keeping up with the demand, and with the number of people moving to Raleigh that demand isn’t slowing down.
This presents a great opportunity for the homes in Raleigh to experience some serious appreciation over those 15 years.
My recommendation is to look at location first and foremost. I like to buy in ‘iffy’ neighborhoods that are in great locations because the location will dictate the future of the neighborhood. If it’s right next to an area that people want to live, the buyers are going to spill over into the next neighborhood. So buy there before they spill over. That will create significant appreciation for you.
Job Growth in Raleigh
Raleigh is ranked #1 for jobs by Glassdoor. This means that the local economy is strong and that Raleigh Real Estate will be a product of the local economy. Jobs are plentiful here in Raleigh and people are happy about working in the Triangle area. This is a strong indicator that the local economy will continue to grow and improve the way it has the last 15 years.
People who are looking for jobs are bound to give the city of Raleigh a consideration especially after the recent report from Glassdoor
Rental Appreciation in Raleigh Real Estate
Rental appreciation in the United States has increased by 2.5% and in Raleigh it’s increased 7.5%. Raleigh has the fastest growing rental increases in the southeast quadrant of the United States by percentage. This is great news for those who own rental properties, and bad news for those who are renting in the Raleigh area.
The rental appreciation is going to have a large impact on your wallet in a negative capacity if you are a renter. However, if you buy a home in Raleigh you can rent it out, or even rent out bedrooms and be the benefactor of the fast growing rental prices!
This is another reason buying a home in Raleigh during a seller’s market makes a lot of sense. There are many ways to buy Raleigh real estate at a discount no matter the market, or number of homes for sale.
Real Estate is a Forced Savings Account
One of the best things about buying real estate is that you’re forcing yourself to save money by building equity in your house. A lot of people retire and their home is the biggest asset they have. This means that after you pay off a 30 year mortgage you can live for free or sell the home and receive a large amount of money. If you rented for 30 years could you do that? Probably not.
A lot of people think that their money in a stock market will do better than it will in a house. They’re not necessarily wrong, however after paying rent for 30 years at an average rental increase of 2.5% the numbers add up really quick. That is money that you’re throwing out the window and paying down a landlord’s mortgage.
Buying a home in Raleigh makes a lot of sense for the forward thinkers who would like a way to build a savings account in the equity of their home.
Building Equity in your Home
Similar to a forced savings account, buying Raleigh real estate gives you an opportunity to build equity. This means that buying a home in Raleigh, even during a seller’s market still gives you the opportunity to build equity.
I know a lot of folks who bought houses at the top of the real estate market here in Raleigh and they rented it out. Eight years later they walked away with a check for $160,000 and sold the home for $15,000 more than they bought it for. The property generated $1,750/month, or $21,000/year and was completely paid off by the 8th year.
This proves that you can build your equity by buying real estate even during a market top (and soon after crash) if you have the right game plan.
Sell for More Money
Even though the buyers who purchased their house at the top of the Raleigh housing market, they still made money on their sale eight years later. They sold their home in Raleigh for almost 10% more than they bought it for. This shows you can sell your property for more even if you buy in a wrong circumstance.
During this time, the plan was to generate enough revenue from the property to pay it off completely. That’s when the sellers decided to sell and walk away with the profits from the transaction.
Buying real estate during a bad time doesn’t necessarily mean it’s a bad financial decision. There’s many tips, tricks, and things you can do to ensure that when you buy a home, it’s the right move.
Tangible Long Term Investment
Raleigh real estate is a tangible, long term investment, that can either provide you shelter or a steady stream of income depending upon what your plan is. You can buy a home and live in it yourself, and build your own equity along the way and you can always rent out other bedrooms if you want to build more income for yourself.
Raleigh homes for sale are selling for top dollar and quickly. If you want to buy a home in Raleigh you should try not to beat anyone up on price (assuming it's fair) and rather negotiate on repairs.
It's a lot easier in this market to get a home under contract with a full price offer, and ask for 5 thousand in repairs than it is to make an offer 5 thousand less than asking. The reason being is that most homes for sale in Raleigh are selling in a matter of a few weeks, and if it's a good deal it will attract multiple offers.
Buying a House makes it Yours
When you rent a house you cannot do everything to it you may want to. Some people want to buy a home specifically because they want to own real estate. This makes it a reason some people will look to buy real estate no matter if it’s a good time to buy, or a bad time.
Do you want to have a place to call your own? Or a spot you can have friends come over and hang out that belongs to you?
The type of freedom comes when you purchase a home and is an additional benefit.
Final Thoughts on Buying a Home in Raleigh Today:
In Raleigh right now there is no shortage of people looking to buy homes, and there is a shortage of people selling. This is what is creating a strong sellers market. With that being said it’s still a great time to be a buyer because of the low interest rates as well as the strong local economy. Homes for sale in Raleigh are selling for
There are a number of dependent factors on whether or not it makes sense to buy in a sellers market and a big one is interest rates. Interest rates have a huge impact on your purchasing power so first and foremost, look at those. They will be a great indicator of whether or not it’s a good time to buy.
Secondly check out the local real estate market trends. You don’t want to buy at the top, but it’s not bad to buy when the market is on the way up from bottoming out.
Hi there! I'm Ryan Fitzgerald, a REALTOR in Raleigh-Durham, NC and the owner of Raleigh Realty. Chances are you and I share a similar passion, Real Estate! I also have a passion for technology, sports, and people. Would love to hear from you. Drop me a note in the comments section below and feel free to share this article socially!