With March comes the first day of spring. A glimmer of hope for those of us who have been locked in gray skies, polar temperatures, and falling snow. Hope is also rising on the housing market. It is expected to turn around in 2023—wonderful news for all the house hunters out there.
In 2023, home prices are expected to stay about the same overall. Although home prices in hotter markets of the last few years might decrease, it is not expected that we will see the price decline across the whole country like we saw in 2008.
Home prices and sales may increase in “locations where home prices have remained affordable over the past few years in relation to median income.”
“[E]xperts point out that today’s homeowners also stand on much more secure footing than those coming out of the 2008 financial crisis, with a high number of borrowers having positive equity in their homes.”
Keep in mind that it’s still a seller’s market. Home prices are coming down, albeit slowly. In 2022 we saw a fast rise in interest rates which may cause home prices to come down more, but that is a difficult prediction to make. Housing inventory is still low. This January saw the fifth straight month of decline in new home construction.
The good news is that many economists say that the housing market is more likely to correct itself than crash. Homeowners have seen their home value increase greatly over the last few years giving them what every homeowner wants to see—equity.
There are a lot of factors to consider when answering this question. Much of the answer lies in your personal situation. How much money do you have for a down payment? What will your monthly housing cost be (calculate yours here)? What is the current interest rate? Buying a house is one of the biggest financial decisions you will ever make.
The main consideration on whether to buy a home now or not is if you can afford the home you want in the area that you want. If you find a house that ticks all the boxes in a great neighborhood close to your job, then now might be the perfect time to buy—if you are in a stable financial position.
Need help navigating the housing market? We got you! Our knowledgeable loan officers have truly seen it all. They will answer all your questions and help you every step of the way. Contact us today!
*Source: Forbes