Buying a home can be scary right now. First and foremost, it’s expensive. With the housing market in its current state, a lot can feel unknown as well.
It’s not as bad as it may sound, though. If the time is right and your finances are in a place that makes you feel comfortable, there’s never a bad time to buy a home. Don’t feel pressured to buy, but also don’t let anyone tell you that your dream isn’t possible.
So if your motto for 2023 is ‘New Year, New Home’, where should you start?
First and foremost, make sure you review your credit report for any mistakes. The last thing you’ll want is to find your dream home, call your lender for a quick pre-approval, then find out that your score has dropped from an unpaid bill or some other minor blemish on your credit history.
An even better strategy would be to talk to your lender up to 12 months before you want to buy for more personalized advice on the steps that you should take to prepare.
So, now that you know where to start, what should you expect regarding the housing market in 2023? Predictions are by no means a guarantee of what’s to come, but informed insight can give you a leg up when you begin perusing the market.
According to some expert insight from my team, we think mortgage rates could fluctuate between 5% and 8% throughout the year. The erratic nature of rates can be stressful, so make sure that you’re consistently communicating with your loan officer to make sure you lock your rate at the right moment.
If rates are predicted to be erratic, what could we expect to be the case regarding home prices? There’s a pretty even balance of lower demand and lower supply, so don’t be surprised if values hold steady throughout the year, with a potential 5-10% decline in certain areas. With lower demand on account of higher-than-average rates, homes will likely sell at a lower pace and the amount of homes sold could be anywhere from 7-to-15% lower than in 2022.
Most likely, where you live, you’ll likely be in a balanced market which doesn’t really favor sellers or buyers.
At the end of the day, the best time to buy a home is the time that’s right for you and you alone. If your 2023 resolution is to buy a home, it’s important to start taking the necessary steps to do so. Contact me or a member of my team and we’ll make sure you start your homebuying journey on the right foot!