Are you thinking of buying a newly built house? Perhaps you’ve thought about building your custom dream home. But maybe the housing market shifts of late have you holding off, taking a wait-and-see approach. Why wait to enjoy the luxury gated community lifestyle? You deserve to live better in a hand-crafted Hagood Home!
While the rock-bottom interest rates of the recent past have been incrementally rising, they are still historically low. And should rates decrease again, there may be the opportunity to refinance and lower future payments, making now a great time to buy your “forever home.”
A Look at Today’s Mortgage Rates*
But first, a look back – to 1981, when average mortgage rates went over 16%. Or to the mid-90s, when 8% for a 30-year mortgage was considered a good deal. And it didn’t get much better in the 2000s. By comparison, the 2020s have been something of a Golden Age for mortgage loans.
So where are we now? The difference between a $500,000 loan for 30 years at 3.5% and 5% is less than $500 dollars a month. Adjustable rate mortgages (ARMs) are a great alternative if borrowers do not need to finance a house for 30 years. Our clients have found success utilizing a 5/1 or 7/1 ARM – these rates are currently at 4%.
A Competitive Market Calls for Action
People are on the move. Millennials, many of whom are first-time homebuyers, number more than 80 million in America and comprise more than 40% of today’s homebuyers. Retirees are downsizing to smaller homes in large numbers. These waves of homebuyers are hitting a market in which inventory is low and demand is high. And while the overall U.S. housing inventory hasn’t yet returned to pre-pandemic levels, we are seeing signs that the historic housing shortage is on the road to a rebound.
Realtor.com’s June 2022 Monthly Housing Trends Report showed a record-setting year-over-year surge of 19% in housing inventory. Homes for sale are out there! Will you be the owner of one?
Looking at New Hanover and Brunswick Counties, available homesites in HOA or gated communities are a rare commodity. Remember, it takes many years and millions of dollars to develop a new community, build the amenities and start selling homes. If you are interested in the area, it’s best practice to get the ball rolling sooner rather than later.
Selling the Home You Have
Will it sell? How long will it take and for how much money? The answers are almost certainly: yes, quickly, and at a good price. According to the National Association of Realtors, at the end of the second quarter of 2022, existing homes for sale in the U.S. were on the market for an average of 14 days. The median existing-home price was up 13.4% from just one year prior.
Appreciation of Your New Home
Should you choose to call the Wilmington area home, you’ll be investing in a red hot and burgeoning real estate market. According to Redfin, home prices in and around Wilmington were up 20.9% in June 2022 compared to the year before. For reference, that kind of yearly appreciation is about double the average annual return of the stock market. Even if the housing market simmers, the value of your new home will almost certainly rise.
Why People Call the Carolinas Home
Why are homes in the Wilmington area and beyond appreciating as much as they are? Economic factors may play a significant part; CNBC crowned North Carolina America’s number-one state for business with the country’s strongest economy in 2022. And folks are flocking to the Tar Heel State. According to the 2020 U.S. Census, the Wilmington area bucked the national trend of population drops with double-digit population growth over the prior ten years. It seems like the beach is a big draw, as areas along the coast in Brunswick County had the area’s highest growth levels.
Coldwell Banker Sea Coast Advantage, the top real estate company in Southeastern NC, explains year over year (January – June 2022 vs. 2021), closed volume sales saw an increase of $169 million – a jump of 10.8% from last year.
Simply put, life in the coastal Carolinas is what many people dream of. The quality of life, weather, taxes, traffic, and everything in between is what draws people in and keeps them here.
Why wait? Moving into a Hagood home will help you enjoy the lifestyle you deserve. Whether you want to downsize or maintain your current home size, with Hagood, you’ll experience luxury living at any size. We also have several included features that help make aging in place a reality.
On top of that, calling coastal Carolina home is the icing on the cake. Pairing our homes with the serenity the coastal Carolinas offer, along with the luxury of gated-community living, is a dream come true for our buyers.
Waiting for building costs and prices of existing homes to come down, as well as anticipating the value of your home (which was artificially inflated for 18 months) will rise, is a great theory, but it may not be realistic. Postponing your decision to build in the coastal Carolinas only reduces the amount of time you have to enjoy living in a Hagood Home.
Are you ready to start the process of getting the home of your dreams? Hagood Homes can help make that possible! Connect with one of our agents at (910) 256-8284 or fill out the form below to discuss how we can get started.
*Mortgage rates are subject to change. Borrowers should consult with a licensed mortgage lender when searching for home financing.