What is the key to homeownership in 2024? Here’s what you need to know

It may be a new year in the Triangle, which always brings fresh perspectives, but there’s one thing that hasn’t changed about the region: it’s still growing as more and more people want to call the Triangle home. And as people continue to move to the Raleigh-Durham area, it means there’s still stiff competition for those looking to buy a home. That doesn’t mean buying a home is impossible. It just means it’s important to take the right approach to homebuying to find success from the start. If you’re interested in purchasing a home in 2024, use the following tips to inform your decision-making before you begin your journey.

The median sales price in the Triangle was still hovering at just under $400,000 by the end of 2023, which remained consistent from 2022. That means buyers can expect prices to continue to remain consistent in 2024, too. In addition, one of the key indicators of a healthy market is when there is four to six months’ supply of inventory available on a market, which means there’s enough supply and demand to keep up with what’s available. In the Triangle, the  months’ supply of inventory remained at 2.5 months through most of 2023, which means it’s still a seller’s market in the Triangle because there’s not enough inventory available for demand. As such, you should be prepared to pay the asking price for a home you’re interested in. It also means you’ll have realistic expectations about what you may pay for a home.

You’ll also need to understand where you are in your homebuying journey. For example, if you currently have a mortgage and are looking to move into the next phase of your homebuying journey, you’ll want to understand how to sell and turn the profit you make into a down payment on your next home. If you’re a first-time homebuyer, you’ll want to make sure you have enough saved up for closing costs and moving expenses. It helps to have some money saved for a down payment, but often, first-time buyers can purchase without the standard 20 percent down. Be ready with a list of questions you may have when you talk to your team so you can buy with confidence.

It’s good to approach buying in 2024 fully informed with the details you need to find the right home for your needs. Being informed means taking the initiative to know what you’re looking for and what the right fit might be before you even start looking for a home. The key to being an informed buyer includes the following:

The pre-approval process is the important first step to purchasing a home. As a buyer, pre-approval results in a written statement of what a mortgage lender is willing to lend you for a home. That means you’ll have a deeper understanding of what you can afford as well as legitimacy from a seller’s perspective if you decide to make an offer.

Pre-approval is easy and typically only takes 10 to 15 minutes to finalize. Be ready to submit financial documents like two years of W-2 statements, 30 days of pay stubs, and a recent bank statement to finalize your application. Also, make sure you get pre-approved, not pre-qualified. Pre-qualification doesn’t result in the pre-approval letter sellers need to accept an offer. Don’t put yourself in a position where you want to make an offer but haven’t been pre-approved.

Pre-approval will help you know the price range your lender is willing to lend you for a mortgage. However, you will still want to know what kind of budget you’re comfortable with once you’re in a home and paying a monthly mortgage. That will help you and your lender have a realistic conversation about what’s possible as you move forward with purchasing a home in 2024.

If you have that specific budget in mind and you’re upfront with your lender, your lender may be able to look for programs that will help you meet your budget on a home you’re looking to buy. Often, lenders can help you see how your monthly budget may change as mortgage rates decrease and how refinancing can help reduce that overall cost down the road.

If you know what your expectations are in a home from the start, a wish list will help you set your sights on the home that meets both your needs and your budget. For example, knowing you need a specific number of bedrooms and bathrooms, a home close to work, or a minimum amount of square footage will make sure you’re not looking at homes that won’t work for your needs.

The great thing about a wish list is that it keeps you on track and will help you identify the homes that truly meet your needs. Write down your needs, and be sure to share it with your real estate agent so they have a clear picture of what you’re looking for.

One of the biggest keys to finding a home in 2024 is making sure you have a powerhouse team on your side, all of whom have insider knowledge of the Triangle market. Using a team that understands the market will ensure you find the right home and that you have minimal, if any, hiccups along the way. Here’s what that looks like.

A local, brick-and-mortar mortgage lender is a critical component of helping you find success buying a home this year. Before you go anywhere for pre-approval, contact a local lender, such as Towne Mortgage of the Carolinas or North State Bank, which has knowledge of the market and what resources are available to buyers.

Lenders like these have partnerships with organizations like the North Carolina Housing Finance Agency. If you’re a first-time buyer, this partnership can guide you to get $15,000 in payment assistance. Local lenders also have relationships with agents, builders, and the time and resources to help you plan wisely before you begin your search.

A great agent isn’t always easy to find, and it’s important to take the steps to find an agent you can trust. Make sure to do your due diligence to make sure you have a great agent on your side.

Keep in mind that a real estate agent is there to work for you, and they should be representing you and your interests as a buyer. A good agent will be proactive and honest with you about your expectations. They should also have a good understanding of what you’re looking for and how to get you into the type of home you want. Finally, they should also have a great support system within their team that will ensure the entire process is seamless and as stress-free as possible.

It’s possible to make 2024 the year you find the home of your dreams. All it takes is approaching the process fully informed and with confidence while bringing on a professional team you can trust. When you tackle the process in this way, you’ll discover you have the key to getting the home you want.