Should I buy a Home in 2023?
If you’re looking to buy a home this year, there will still be opportunities. No doubt, the past couple years have been a challenge for home buyers, and for nearly everyone else involved in the industry. Very low interest rates combined with a relatively strong economy in 2019 through 2021, created a dynamic not seen before. This not only put pressure on real estate agents, but also did to appraisers, lenders, inspectors, closing companies and others involved in making the transfer of real estate properties happen.
Home Sellers definitely had the ball in their court. It seemed most properties didn’t have a problem selling. Inventory was low. Qualified buyers heavily outweighed the number of homes for sale. Many properties would receive multiple offers over asking price. Contingencies were even sometimes bypassed. But those sellers still had to have a place to live, and as a result, became a buyer in the same breath.
Now that interest rates have risen substantially, that seems to have stabilized the real estate market climate. So now what? Can I still buy a home? With interest rates higher, home buyers are taking a deep breath and can possibly take a slightly less aggressive approach. But if you are serious and want to buy a home, you still need to have the i’s dotted and the t’s crossed before you even begin to physically look at properties.
Yes, home prices have increased quite a bit in recent years. As homeowners were upgrading to a higher end property, it’s now possible that there may be some buyer’s remorse. Some may need to downgrade (or even unfortunately enter into a foreclosure); there will always be a climate of selling and buying taking place. Especially as long as there is a need for housing. And there always will be.
This year may not be the perfect set of conditions to buy a home, but remember back around 1979, rates were about 11 percent interest. So, with it currently under 6%, don’t let it scare you. Just be sure to meet with your lender first and discuss your buying affordability and comfort zone. Just because you can afford a certain mortgage payment, doesn’t mean that you should take it on.
There are many other topics to discuss heading into this year, so feel free to contact me and let’s talk about selling or buying a home. Start your search right here on my site.