Housing Market Predictions for 2023: Part Two
Following last week's post on housing market trends, we are back this week with more tips and insights from industry experts. First, we'll discuss the issue of timing and analyze whether or not 2023 is truly your year to buy a new home.
Regardless of how good or bad the market is, buying a home is always a highly personal decision. With homes representing the largest single purchase most people will make in their lifetime, it’s imperative to be in a solid financial position before diving in. Using a mortgage calculator like this one can help you estimate your monthly housing costs based on your down payment and interest rate.
Many hopeful house hunters might be tempted to watch the market carefully and try to predict what might happen. According to experts like Neda Navab, president of the U.S. region at real estate company Compass, this is not the best strategy. Regarding this, he said:
“Buyers sitting on the sidelines today in anticipation of lower prices tomorrow may end up disappointed.”1.
While it is expected for home prices to decrease slightly in hotter markets, experts like Navab do not expect this decrease to be national or widespread like what was experienced in 2008. Instead of waiting for home prices to decline, we suggest that you purchase a home that will fit both your needs and your budget. If you find a home you love in an area you love that also fits within your budget, then it just might be right for you. However, if you make too many sacrifices just to get a house, you could end up with buyer’s remorse, which has the potential of forcing you to offload the house.
Tips for Buying A Home In Today's Market
If we could only suggest one thing to you, it would be this: Start with a budget that you can stick to. Experts agree that even with a slight uptick in the number of homes for sale, buyers are still facing elevated prices with mortgage rates nearing 7%. Rita Tayenaka of Orange County, California-based Coast to Canyon brokerage, says this:
“Buyers want to lowball, and sellers want last year’s price...The biggest thing right now is the disconnect between buyers and sellers.”
While it is true that buyers are getting a bit more breathing room now, they should keep in mind that it’s still a seller’s market as they consider all of their options.
Tips for Selling A Home In Today's Market Step one in a successful sale is finding a listing agent who knows the area and comes highly recommended. A good agent will work closely with you to price your home competitively while fielding questions and offers from prospective buyers. The team at Lincoln Realty checks all of those boxes. We pride ourselves on being an honest, hometown company with local agents who are passionate about their community. Our experienced agents are committed to helping you along every step of the way to ensure a smooth and successful sale. Additionally, even with the market still tipping in your favor, it’s in your best interest to present your home in the best possible light. Not everyone has cash dedicated to renovations and repairs, but a little sweat equity can go a long way. The way you stage your home for your listing matters! Declutter, organize and clean, then take good photos of your home to post with your listing. If you have a showing scheduled, consider turning on a wax warmer and spraying some room spray to give your home an extra homey feel for potential buyers. Small things like that can make all the difference in selling your home! Even if your home is outdated, a clean space gives buyers a chance to envision the house’s potential and there is no more important time to put your house's best foot forward than when making a first impression with a potential buyer.