Let's face it, the last few years have been rough for the housing market. Specifically for buyers who are looking to upgrade their home size as a result of spending more time in their houses with family, working from home, and entertaining.
Mortgage rates have been on the rise since COVID-19 first hit in 2020, but luckily, we have started to see a downward slide in 2023 for those looking to purchase their next residence. In this article, we will explore home buying trends of 2023, so that you can properly prepare yourself for entering the housing market this year.
When it comes to purchasing a home, inventory still remains scarce. This has been a common trend that home buyers and sellers have experienced since 2008 when the financial crisis first hit. With less supply, the demand still stands strong, meaning if you are planning on selling your home in 2023, you might be able to price that at a higher point than you would normally.
If you are somebody who is looking to build your own home or customize a starter home and expand it, 2023 might just be your year to do so. While embarking on these large construction projects is an incredibly personal decision, building permits have increased by 13.8% this month, and single-family construction starts rose 9.8% in February. This is a positive sign for the influx of building materials that have begun to normalize after covid.
Some housing market experts have warned of a possible crash in 2023, but economists have predicted that the housing market is more likely to correct itself this year. Nationally, economists are estimating a 5% drop in housing prices. However, in highly sought-after areas such as locations with good weather for impressive public school districts, prices may continue to increase. This is why working with your realtor is so important, to make sure that you are getting the best bang for your buck.
To avoid continuously pouring rent money into paying off your landlord's mortgage, more first-time home buyers will consider 2023 as the right time to purchase their new home. This is especially true for potential home buyers in the Northeast where rental prices have continued to skyrocket and do not show signs of slowing down anytime soon. Before putting yourself on the market to buy, it is important to speak with a professional to understand if you are truly in the right financial position to do so.
Over the past 2 years, home buyers have felt extremely pressured to put in an offer immediately after seeing a home that piques their interest. This is due to an extremely hot market, where houses do not stay on the market for long before they are sold. This has put extreme pressure on home buyers to offer a sale well over the asking price. In 2023, housing market experts predict that homes will stay on the market for a longer period of time. This is due to the fact that sellers will not be completely dictating their own terms as the market continues to cool. This is a great perk for possible home buyers, as they will get more time to tour a multitude of homes before deciding which spot is the right pic.
While the housing market continues to pose challenges for buyers and sellers, it is important to build a support system that helps you make the best personal and financial decisions for you. If you are considering 2023 as the year to either buy or sell a home, contact Vsells & Associates today for professional support as you navigate your real estate journey.
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Whether you are buying or selling, we at VSells & Associates make it our mission to guide our clients through the whole process. We make moving simple, straightforward, and as stress-free as possible.