In real estate, a hot market, refers to a market where houses are being sold quickly and at higher prices than previous months or years. This type of market is also called a seller’s market, meaning the seller has the advantage in this type of market. If you’re planning on selling a home during a seller’s market, it’s not uncommon that you’ll receive offers over the listing price.
Signs of a hot market:
- Lower Inventory.
- Most houses stay on the market for less than 6 months.
- Higher amount of buyers.
- Rise in median sales prices.
Buying a home in a hot market isn’t always easy. The low inventory leads to a ton of competition. You need to be prepared for a bidding war and the possibility of paying over the listing price. So why would you want to buy during a hot market? A hot market means the city is thriving. Markets are hot when unemployment rates are low, there is steady income growth, and homes are appreciating. When you buy into a hot market you are making an investment for your family’s future. Buying a home in a hot market also leads to the ability to earn more equity. You’ll put down more at closing, more tax benefits and if you hold on to the home long enough you’ll see it appreciate even more.
Average household income: $71,685
Median listing price: $342,900
Appreciation over the next year: 3.1%
Best city to live in America ranking: #7
- Stick to your needs.
If you need a 3 bedroom home with a 2-car garage, and an open floor plan, don’t look at anything that doesn’t fit your needs. There’s nothing worse than falling in love with a home that doesn’t work for your family. This can cause you to make a bad decision you will later regret.
- Look in Up and Coming neighborhoods.
Buying in an up and coming neighborhood is perfect for people who are buying a home long-term. You may even be able to find a home at a better price than you would in a nicer part of town. Although you may have to deal with some eyesore homes for a few years, eventually they’ll be bought out and fixed up. Purchasing in an up and coming neighborhood is a great way to find a home that will appreciate over time.
- Buy New Construction
The best way to avoid making a bad purchasing decision is to buy a new construction home. If you buy the home pre-construction you can avoid bidding wars, make design decisions and ensure your family has a home that fits your needs. Most new construction homes are being built in up and coming neighborhoods. If you’re in it for the long-haul your home value will only increase over time.
Raleigh’s hot market comes as no surprise with low unemployment, great schools, and a low crime rate, it’s no wonder people want to live here. If you’re thinking of buying a home in Raleigh, avoid making a pressured decision in this hot market and schedule a consultation with one of our advisors. It’s free and you’ll have plenty of time to make the right decision for you and your family.