Home prices increased by 19% between January 2021 and January 2022, making it challenging for many people to buy houses in 2022. In addition, house prices have risen constantly every month from January 2022 to June 2022. In every month except April 2022, house prices, mortgages, and rents increased at a faster rate than before. Housing experts also predict that the prices will continue to be high for the rest of 2022 and even in 2023. With the economic situation worsening, is it possible for people to purchase a house in Fayetteville, NC?
Buying a house in the current market can be challenging, but it’s not impossible. Here are some tips for interested home buyers.
Buy a House as Soon as Possible
You might think you should wait a few months or years for the housing market to stabilize, but this will get you nowhere! According to real estate experts, the prices of houses and mortgages will only go up in the future. In addition, if you have savings for a down payment, it’s better to purchase a house as soon as possible, as your savings will lose value due to the rising inflation.
Moreover, house rents will also increase with increasing house prices. People living in rented houses would have to spend a huge part of their monthly earnings on rent, preventing them from saving a lot. These high rents will also stop you from saving money for any emergency. On the other hand, if you move to a house, you’ll give almost the same amount as a mortgage monthly and get your own house in the end.
Avoid Splurging on Luxuries While Buying a House
Did you always want a house with a lavish swimming pool or a patio? Sadly, now’s not the time for that. With house prices constantly rising, it’s essential to stop considering some features while buying a house. Start by listing all the features you need and want in a house and determine their priority. For instance, you can make two columns: one listing necessary features like more space, good lighting, a well-structured kitchen and bathrooms, and the other listing luxuries like patios, walk-in closets, or laundry rooms.
Remove luxury features you don’t need one by one and see their impact on the house price. A house with these luxury features will cost way more than a house that doesn’t have them. Only consider needs when buying a house; you can always remodel your space to add features down the line.
Look for Homes in New Neighborhoods
If you don’t have any preferences regarding a neighborhood, we recommend expanding your home search to newer neighborhoods. While we understand that some people prefer living in cities due to their jobs or college, working from home and virtual classes allow people to work or attend classes from anywhere. Therefore, if you have a work or study situation where you don’t have to visit your workplace or institute daily, consider looking for a house in a less in-demand area.
In addition, you can expand your house search by looking at smaller houses, different communities, and areas you haven’t considered before. However, you should consider some necessary neighborhood aspects like a low crime rate and the presence of medical facilities before settling down.
Improve Your Credit Score Before Buying a House
Besides house prices, mortgage interest rates have also increased significantly. However, the best way to qualify for a mortgage with the lowest interest rate is to have a good credit score and financial situation. If you have a credit score of 740 or higher, you can find a mortgage lender, where you would have to pay less-costly monthly payments. But how can you improve your credit score despite the rising inflation?
Start by paying your credit card debt as soon as possible. In addition, financial experts recommend making payments every month in the first few days of a month. Credit card companies report your credit score to credit bureaus at the start of every month, and the sooner you pay off your debts and payments, the sooner your credit score will improve. Moreover, we recommend not investing in cars or jewelry if you’re about to purchase a house.
Hire a Real Estate Service in Fayetteville
With these methods, we hope you will soon be able to purchase a house in Fayetteville, NC, with all your required features. If you need assistance in buying a house, we recommend trying the services of Phillip Fehler Realtor Northgroup Real Estate, a real estate service in Fayetteville, NC. Their experienced real estate agent in Fayetteville will help you find a house within your budget. In addition, their local partner Susan Daratony can guide you about getting a mortgage.
Reach out to them and buy a house through their residential real estate service in Fayetteville, NC.
About the Author
The author is none other than Philip Fehler, founder of Phillip Fehler Realtor Northgroup Real Estate. He is an experienced real estate agent who helps clients buy and sell houses in Fayetteville.
