Across the Raleigh Triangle buyer confidence remains extremely strong. Inventory and time on market varies with location and price point but two facts hold true: homes are selling fast and prices continue to rise. Homes are selling particularly fast in and around the 27519 zip code and with the revelation that Apple may be coming to RTP we may see this trend accelerate as more details come to light. One thing is for sure, West Cary has been, and will continue to be, one of the busiest areas in the Triangle not just for resale homes, but for new construction homes as well. If you are looking to sell your current home and move up to your dream home, now may be the best opportunity to do so for quite some time.
Mortgage interest rates have risen by more than half of a point since the beginning of the year, and many assume that if mortgage rates rise, home values will fall. History, however, has shown this not to be true.
Where are home values today compared to the beginning of the year?
While rates have been rising, so have home values. Here are the most recent monthly price increases reported in the Home Price Insights Report from CoreLogic:
- January: Prices were up 0.5% over the month before.
- February: Prices were up 1% over the month before.
- March: Prices were up 1.4% over the month before.
Not only did prices continue to appreciate, the level of appreciation accelerated over the first quarter. CoreLogic believes that home prices will increase by 5.2% over the next twelve months.
How can prices rise while mortgage rates increase?
Freddie Mac explained in a recent Insight Report:
“In the current housing market, the driving force behind the increase in prices is a low supply of both new and existing homes combined with historically low rates. As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.”
If you are thinking about moving up to your dream home, waiting until later this year and hoping for prices to fall may not be a good strategy.
Source: KCM Justin Hemker Blog