As the Triangle deals with a shortage of housing inventory for buyers looking to make a move, you may be wondering if the purchase of a home should be on your radar. Buying a home anywhere across the Triangle is a wise investment and will continue to remain one in the coming years. In fact, here are three smart reasons you should make the financial investment in a home this year.
The Triangle will remain a hot market
With new tech industry coming to the Triangle in the coming years, it’s estimated the population of the Triangle will grow by 20 percent or more across its counties by 2030. As the area is poised to grow significantly, the area’s leaders are looking for solutions to the current housing shortage the Triangle is experiencing.
With no signs of the housing boom slowing down and with active solutions in the works, it’s expected that purchasing a home nearly anywhere in the Triangle will be a smart investment in the long term. The Triangle MLS reports a 24 percent increase in median sale prices from 2021 to 2022. That’s in addition to the increasing home prices seen during the Covid-19 pandemic.
In fact, new data from ATTOM Data Solutions shows homeowners across the Triangle are already considered “equity rich,” which means a homeowner owes less than half on a mortgage balance than its fair market value. Nearly half of Wake County homeowners and more than 55 percent of Durham County homeowners obtained this status thanks to the current housing market. North Carolina is currently ranked second in the country for growth equity-rich homes.
In short, the purchase of a home in the Triangle will be a wise financial investment for the long term.
Interest rates are still low
While interest rates have climbed from the historic lows seen during the Covid-19 pandemic, they are still lower than historical averages. The Federal Reserve is expected to continue to hike rates to fight inflation, but with the right set of circumstances, you can take advantage of where the rates stand today.
A larger down payment or a shorter term may help get you the best rates. Your credit score and debt-to-income ratio can have a big impact on getting a great rate as well. Securing a good rate will ensure you have the most financial success with your new mortgage.
To find the best mortgage, and discuss the best options for your financial situation, get in touch with a trusted lender like Towne Mortgage of the Carolinas to discuss your options.
You’ll get tax benefits
One of the major benefits of a home purchase are the deductions you can claim on your taxes. These deductions will give you financial advantages that will help you offset the costs of homeownership. You may be able to claim everything from mortgage interest and real estate taxes to home improvements and even office space if you are a business owner that works from home.
Talk to your financial advisor or your mortgage lender to discuss the full financial benefits of owning a home. They’ll be able to offer the proper advice to ensure you make the best purchase for your future.
When to buy
Purchasing a home in the Triangle is a smart financial decision you can make in 2022 that will provide you success well into the future. Because homes traditionally enter the market at the highest rate during the spring, now is the time to start your search.
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