The decision whether to buy now or wait is a very important one and one that cannot be made without weighing all the pros and cons. Of course, it all depends upon your personal situation as to whether or not it is the right time to buy, but basically, it is always a great time to own real estate. This may be an over simplified answer to the questions, but real estate remains a very solid investment, no matter what the economic situation. The bottom line is that the purchase of personal real estate in which you intend to live is not simply an investment instrument. For investment purposes, it may not be the best time to purchase real estate, but for personal use, it is always a great time to buy.
What are the reasons that this is a great market in which to buy? First of all, the Triangle area of North Carolina is one of the strongest real estate markets in the United States, but without this major reason, here are a few additional ones that extend beyond Raleigh, Cary, or Wake Forest.
1. Selection, selection, selection. Currently there are more than 17,700 single family homes listed for sale in the Triangle area, up from only 14,500 in October, 2006. This simply means that you have more options available for you to purchase. With the exception of a few isolated price ranges and locations, the supply of available homes is much greater, so you will have a better opportunity to find exactly what you need and want.
2. No Bidding Wars. Raleigh has never been an area where we experienced bidding wars for homes. However, we have had homes that had multiple offers that often resulted in either a full price offer or more than a full price offer. This was the results of the high number of people selling their homes in other parts of the country for much more than the paid for them and moving here with plenty of money to buy exactly what they wanted. Today, that segment of the buying population are finding it more difficult to sell in these once "hot" markets, and thus, cannot buy here until they sell. This has resulted in fewer buyers with a greater selection.
3. You can make an offer. Again, the Raleigh market has never seen a situation where housing was not negotiable. However, it may be a great time if you are interested in new construction as many builders in the Triangle are ready to make a deal and sell their inventory due in part to the national trends, not the local ones. In fact, many of the national builders are feeling the pinch due to the real estate markets in other parts of the country so they are willing to make deals here. As for resales, many sellers are concerned about the national attention that the real estate market has been given and thus, are more motivated to sell and willing to consider any and all offers. Ida Terbet has said that the offers she has received for many of her listings have been challenging to say the least. Where last year, these offers were not even considered, they are now being taken serious and attempting to be worked out to benefit both parties involved.
4. Patience is tolerated. Last year, timing was everything when it came to a home. You had to act quickly in order to get the home for the fear of losing the home. Today, buyers have the opportunity to view the home a few times and make a solid decision about the home and the neighborhood without as great of a fear of losing the home. This is not to say that homes are not still being sold and buyers will not lose out on their dream homes if the fail to act, but the odds are greater that they will not.
5. Location, location, location. With the added inventory that we have in the Raleigh market, buyers are more likely to get the exact location they wish. Less competition for these homes and a greater number of homes available means that you will have a much easier time getting to the neighborhood that you like the most. Of course, there are some locations that are still hot properties which include North Hills, Cary, and inside the Beltline. There are also some price ranges that are limited in inventory to include homes between $200,000-300,000. If this is the range or location you are wanting, I would suggest that you start looking now to get it before it is gone.
6. Real Financing is Still available. I have never been a proponent of many of these products that have now failed in our national housing market. The zero down, no doc., adjustable, sub-prime loans are basically gone for now. Will these instruments be back? Of course they will be back, but with tighter requirements than in the past. In 2005, if you had a pulse, you could basically qualify for a home loan. This is not the case now nor should it ever be the case. You have to be able to manage your personal finances before you consider buying a home. Word of wisdom from my mother: "Your monthly housing payment(rent or mortgage) should never be more than a third of your monthly income." This would be good for anyone to consider before buying a home.
If you have any questions about this article or wish to discuss it with me, please feel free to call or email me. My door (and phone) is always open to anyone.
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