A Look at the Raleigh Housing Market and the Top 3 Insights for Buyers

Originally published in the Spring 2022 issue of Wake Living Magazine.

Whether you live in Raleigh or are thinking of a move to the area, you already know two things: it’s a wonderful place to live and the housing prices reflect that. There has been a dynamic shift in recent years leading to a lack of inventory and affordable housing. This makes it increasingly difficult to buy a home, especially for first-time homebuyers or those with tighter finances.

Currently, the average cost of a home in our area is close to $400,000. This is expected to increase around 24% in 2022, making it the third -hottest housing market in the nation. Waiting for the market to cool down will likely leave you with fewer options or even higher prices.

If you’re considering buying a home in such a hot market, here are three important takeaways:

1. Home values aren’t rolling back anytime soon.

We’re still in the trajectory of growth, at least until 2023, and there’s a lot of competition. This has led to many cash offers, increases in due diligence amounts, and sight-unseen purchases. The market has put sellers in the driver’s seat and they aren’t motivated to negotiate like they have been historically.

2. Having a great financial partner is crucial to getting into a new home.

The right financial partner can help you carve out a creative path to homeownership. If you aren’t ready to start making offers today, your financial partner can help you prepare to do so in the future.

There are a variety of lenders, some with attractive pricing, but the best results will come from using a local lender with whom you can build a relationship. Local lenders can provide the attention you need to navigate a bumpy road in such a competitive market, especially if you need assistance getting in a position to purchase.

3. Find a mortgage tailored to your financial needs.

One of the biggest misconceptions about buying your first home is the need for a 20% down payment. Finding the right loan requires a lot less cash to get the keys to your new front door.

For instance, Coastal Credit Union offers a new mortgage with which you can finance up to 105% of the purchase price of your home. Regardless of the lender you choose, it’s best to find a mortgage that helps you get through the homebuying process in a way that sets you up for success after you move in.

The benefit of Coastal’s program is that the ability to add up to an extra 5% of the home’s value into the mortgage creates the opportunity to be creative with your finances and offers. It allows buyers the flexibility to keep cash for deferred maintenance costs or renovations, covering closing costs or even other expenses.

Some borrowers may also need to find a partner who can help them navigate less traditional employment situations, especially given the rise of the gig economy. However, this type of work shouldn’t prevent you from getting a mortgage. Having a two-year history of consistent employment paired with the willingness and ability to repay loans, as well as a lending partner like Coastal, who can help with your unique circumstances, can help put the foundation in place for success.

The most important thing is to work with a lender who will work to help you achieve your financial and homeownership goals. A loan officer will help navigate the complexities of the current market, but Coastal Credit Union also offers a Homeownership Course to members. The free online course prepares borrowers with the crucial knowledge for smart homeownership decisions.

Buying a home can be an exciting time but it can also be stressful, especially these days. Make sure to navigate this hot market armed with knowledge and a financial partner who can help you get there.