Photo Copyright: forca / 123rd.com
Your neighborhood is getting crowded. Your new family is growing fast. Your job requires too much of a commute. You’re expanding your Etsy business and need room to grow….
There are a million reasons to move up from your first home to something larger, more comfortable, or closer to town. If you’re a homeowner who’s been thinking about making that move, now is time to stop thinking and act. Despite the dire news you may have read recently about real estate affordability and inventory, the current state of the market has created much opportunity for current homeowners like you to move up to your dream home. Here’s why:
High demand for low-priced homes means more negotiating power for sellers.
Available homes for sale at the end of the first quarter was down 40% when compared to 2021. Our region is currently seeing less than three months of inventory in many neighborhoods and price brackets. And some fast-paced markets, like Wake & Johnston County, are seeing as little as one or two months of inventory in the most affordable segments.* Anything under six months indicates a seller’s market.
That means that as the seller, there is more demand for properties like yours. Right now, you have more negotiating power against buyers who are competing against many other buyers for the same properties. Buyers at low ranges are paying more for homes right now than they would if the market was flooded with property choices.
*Editor’s Note: Remember, months of inventory estimates the number of homes available compared to demand. For more, read How does Months of Inventory Affect the Prices of Homes for Sale?
Less demand for more expensive homes means more negotiating power for buyers.
In North Carolina, the housing market is currently very active at the extremes. First-time home buyers are snatching up affordable properties wherever they can, and our luxury market remains robust. But there is currently less demand for homes just below the luxury level. If you are looking to sell and move up to an upper-mid-range home, you have more negotiating power. Sellers in those price ranges whose homes have been on the market for several months already are more open to discussing upgrades or amenities that could make or break your purchase.
Mortgage rates are inching up.
According to Freddie Mac, the average 30-year, conventional, fixed-rate mortgage rate is currently at 5.12% with an APR of 5.14%. However, these rates are on the rise. In December of 2021 the 30-year, conventional, fixed-rate averaged 3.10%. Today, most experts believe that rates will continue to inch up as 2022 progresses.
Small changes in rates can have an outsized effect on the long-term costs of homeownership. Since rates are expected to rise, locking in a low rate, even if it’s not the lowest in history, is the best way to have some budget certainty.
Which brings us to our last reason to move up now:
Home prices are on the rise, and will continue to increase.
Even though the housing crisis from 2007 - 2010 has squarely drifted over the horizon, many are still feeling the ripples it caused. Many current homeowners who stayed put during the crisis are still skittish about moving up. And while the COVID-19 pandemic inspired some to move, it’s forced others to dig in their heels and stay in place. The market is welcoming all who do enter it with open arms.
If you’re ready for a new home and you make a smart purchase that isn’t too far out of your means, your move could pay off in the long run. Home prices are on the rise and won’t slow anytime soon. In Wake and Johnston County, Q1 home prices were fully 18% above Q1 2021. Investing now means you won’t be priced out of your dream home, and that you are able to take advantage of that appreciation before you choose to move again.
Ready to begin your next home search? We can help!
If you’re considering a move up to your dream home, it’s in your best interest to invest sooner than later. You can negotiate a great return on your current home and take advantage of low mortgage rates—all while your new home’s value only increases. Take advantage of this mortgage calculator in advance of purchasing your next home.
Our professional EXP agents stand ready to help you navigate these exciting, albeit challenging, market conditions. Reach out to your EXP agent today!
All real estate is local. In order to make confident real estate decisions, we believe it is important for you to have timely and neighborhood-specific information. If you would like more information about buying a home in NC, our experts at EXP Realty are here to help. Contact us today to speak with a EXP agent about buying homes or land in North Carolina.