How to Buy a Home in Today's Market

A Closer Look at the Triangle Housing Market: 3 Key Insights for Buyers

If you are considering moving to the Triangle, two things are clear: the Triangle area is a wonderful place to live, and the rising housing prices show it. A dynamic shift in recent years has led to a lack of inventory and affordable housing – eclipsing even Charlotte’s housing market, normally the largest in the state. The spike has made it increasingly difficult to buy a home, particularly for first-time homebuyers or those with tighter finances.

Based on a 2022 internet search, Triangle buyers can expect to pay about $400,000 on average, a record-high that’s expected to increase around 24% in 2022, raising the average to nearly $450,000. Zillow® has forecasted Raleigh to become the third-hottest housing market in the nation (led only by Tampa and Jacksonville), thanks to its sturdy job market and fast-moving inventory. And according to LendingTree®, a Charlotte-based online loan marketplace, Raleigh is currently the third most competitive market in the US, due in part to the high number of buyers with good credit scores.

Waiting for the market to settle, however, will likely leave hopeful buyers with fewer options and higher prices.

Despite tremendous market competition and higher prices, if you’re considering buying a home in the Triangle, here are three factors to consider:

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

Growth trajectory for Triangle home value is expected to soar at least until 2023. The new norms today – cash offers, rising due diligence minimums, and sight-unseen purchases – create an extremely competitive market for buyers. Sellers, consequently, now dominate the market. They can both expect their homes to continue to appreciate and anticipate long-term growth in this market, and as a result, they’re far less motivated to negotiate compared to previous years.

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

A trusted and experienced financial partner can help you carve out the best path to homeownership. If you aren’t quite ready to start making offers, a lender can help prepare you to do so in the future.

There is a wide range of lenders and pricing, but a local lender with local experience tends to yield the best results. Local lenders, with whom you can build a good relationship, can offer the attention you need to navigate such a competitive market, especially if you need assistance getting your finances in order to be in a position to buy.

3. Find a mortgage tailored to your financial needs.

Finding the right loan often entails far less cash than you may think. One of the most common misconceptions about buying a home, for instance, is a 20% down payment requirement.

Consider a mortgage with Coastal, which allows qualified buyers to finance up to 105% of a home’s purchase price.¹ Adding an extra 5% of the home’s value into the mortgage creates opportunities to be creative with your finances and your offers, a big plus in today’s market. It allows buyers the flexibility to keep cash for deferred maintenance costs or renovations, covering closing costs, paying down other debt, or expanding their buying power to get a better house. Whomever your lender of choice, secure a suitable mortgage that helps you get through the homebuying process in a way that sets you up for success after you move in.

The key takeaway? Working with a local lender will get you guidance toward achieving homeownership that aligns with your financial goals, a sometimes daunting task in this highly competitive market. A traditional loan officer can navigate the complexities of the current market; Coastal offers this and more. Our free digital Homeownership Course shares expert insights around the complexities of home ownership. It equips buyers with the knowledge to make successful homeownership decisions, some of which may surprise you.

Buying a home is an exciting new chapter, and there’s no better feeling than being handed the keys to your new home. Coastal’s experts are here to guide you through the process so you don’t have to stress or wonder if you’re doing everything you should be. With the Triangle’s hot housing market, be sure to find the right lending partner and a mortgage best tailored to your financial needs so that you can purchase your dream home this year.