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Buyers Market Again
The shifting market is bringing complexity back to the real estate transaction. Odds are, you’re looking for ways to get off the fence and into the market. You’re not alone. So…should I buy a house this year? The answer is…Yes, you should buy a house this year.
Buyers who wait for more inventory, lower interest rates or something else may never own a home. And given history, 2023 is a pretty good year to commit. Mortgage rates are finally falling across the fruited plains, with rates in the 5.6% range for a 30-year fixed mortgage not uncommon in early February. Couple that with declining home prices and an uptick in the residential real estate inventory, and it looks like the great American homebuyer finally has leverage after two years of home sellers calling the shots.
Buyers getting an edge
Mega-high prices are a thing of the past. The price climbing, we saw in 2020 and 2021 has hit a plateau. It took a good chunk of 2022 for many sellers to realize 2021 is long gone and they needed to be more realistic with the pricing and condition of their home.
In addition, buyers see a return to a more balanced market in 2023. “Now, buyers actually can get inspections and can negotiate prices. This wasn’t the case with the drama of 2022.
The Federal Reserve is hitting the brakes. The U.S. Federal Reserve is slowing down its policy of substantial interest rate increases that were prevalent in 2022. This means more buyers will be able to purchase a home at a lower rate AND home prices have been reduced to a more reasonable level as well, and this will continue for much of 2023 as the competition to purchase homes has lessened.
One of the most important things a would-be home buyer should do right now is to stay hopeful and be prepared.
“Don’t assume that just because you’re having trouble finding a home now, or can’t afford a house at today’s rates, that you’ll never be a homeowner. If you have patience and are willing to compromise on some things, like how many bathrooms your house needs to have or what specific neighborhood you require, you can make your dream of homeownership a reality.
Additionally, being prepared financially when a good deal arises is critical right now.
“Be diligent about saving money and make all your monthly payments on time to protect your credit. Shop around and compare mortgage offers from different lenders or investigate different mortgage loan programs – like FHA or USDA backed loans – so you can make the home buying experience more affordable.”
