Homebuyers Have Many Reasons to be Optimistic in 2023!
The challenges we faced in the housing market this past year are well-known. It began with 2020 home prices rising by 12% (as opposed to 6% in prior years), then increasing to 18% in 2021, and finally leaping to 25% in 2022.
Combining that with rising mortgage interest rates, the 2022 single-family housing market took a clobbering.
What will 2023 hold? Despite reports that the market will stay somewhat weak, we can't ignore the upward potential and the great possibilities for homebuyers in 2023.
Rethinking How Inflation Affects Your Homebuying Goals
The end of this inflation period remains to be seen, but buying is still a great idea (even for those who see it prolonging). That's right, even at today's prices and mortgage rates, there's still plenty to look forward to when buying a home in 2023!
Chances are that your wage and your home's appreciated value will increase. Actually, many economists agree that the stable job market and equity will likely prevent most foreclosures.
So if you can afford the first year of payments, you'll likely be better off for the rest of the inflationary period.
Also, home shoppers may find some relief with increased inventory. Danielle Hale, chief economist for Realtor.com, anticipates that inventory will gradually increase by 22.8 percent in 2023.
It's also noteworthy that areas where home price growth rose the fastest will likely see the biggest price declines --and even stabilize by the end of 2023 --before resuming a more reasonable pace of price growth.
Need another reason to stop renting? How about even higher rent? Many forecast that rent will continue to increase in the coming year.
Things will be different in 2023. Regardless of how long it will take for inflation to come down and rates with it, positive things are happening now and in the coming year --making it a great time to buy a home and build more security for yourself and your family.