For the many people priced out of the North Carolina’s real estate market, there may be some relief in sight. There are some early signs the housing market may be just starting to cool down.
Home prices in the Piedmont Triad have surged at a fast clip since 2020. In the second quarter of 2021, the median sale price in the Winston-Salem area rose 16% from a year ago and over 10% over the first quarter to $198,000. While the pandemic had a clear impact on this red-hot market, factors such as supply and demand, low interest rates, and building material have all helped drive up home values.
New numbers, however, have shown that fewer buyers are applying for mortgages and price growth is slowing down. In Winston-Salem and Greensboro, the median sale price in July and August 2021 eased back from the record high in June 2021, based on data made available on Realtor.com.
According to money expert Ja’net Adams, “Housing has been hot for over a year! So hot there were people buying houses without seeing them in person. The housing market was so out of control that it started to price out regular buyers. Now the housing market is starting to cool off and heading back towards normal.”
With bidding wars and all-cash offers becoming the new normal, buyers have had to get creative and sometimes even take high-risk, drastic measures such as waiving inspections. For those looking to buy a home, Adams shared some tips with WFMY News2:
Cash
“Having a down payment for a house could help you be in a better position when you find the house you want to buy. During this past year, those with the most money won the bidding wars and although the market is going back to normal you still need to come to the table with your best down payment. I suggest a 20% down payment and if you don’t have any money saved yet you should get started today.”
Flexibility
“Buying a house is the biggest investment you will make in your life, but that doesn’t mean that you have to be unmovable. It is okay to have preferences when it comes to the type of home you want, but if you want to buy a house in the next year you need to be willing to be flexible in your choices because the supply of houses is low.”
Real Estate Agent
“If you don’t know real estate like the back of your hand then you need to get some help. Before you start looking for a home, reach out to a real estate agent that knows the area that you want to live in. A real estate agent can save you time and money.”
Is there anything that The Sharpe Mortgage Team can do for you this week? If you’re interested in purchasing a home or refinancing your current home in Winston-Salem or the surrounding areas, give us a call! We can discuss your financial goals and discuss a loan program that might be right for you.
