As we quickly approach 2023, now is a great opportunity to speculate real estate market trends for the upcoming year.
With mortgage rates hitting new highs, sales and prices declining in certain areas, and anxiousness rife throughout the market — many homeowners, buyers, and sellers, are hesitant about what this New Year holds.
In 2022, interest rates have nearly doubled from their original low figures.
Unfortunately, this means that home financing may be costlier in the short term.
But is there any hope for 2023? Is there some sort of silver lining to this disheartening situation?
In this article, we’ll take a closer look at what the housing market has in store for buyers in 2023. So whether you’re just starting your search or are ready to make an offer, read on for insights and advice that will help you find your dream home!
Will 2023 be a buyer’s or a seller’s market?
Many believe that for the first time since the pandemic began, we will see a shift to a buyer’s market where sellers will be more apt to negotiate.
This means that buyers can expect more deals and incentives as competition amongst sellers increases, potentially making it easier to buy a home in 2023.
That’s not, however, a guarantee, and the market may still remain a seller’s market depending on your local area.
A buyer’s market tends to offer buyers more bargaining power and may also mean a slower pace of sales.
This can be great for those looking to find their dream home, as it gives them time to look around and decide on the perfect property.
It’s important, however, that house hunters don’t get too caught up in the process and make sure they’re still making smart investments by doing their due diligence.
Will home prices drop in 2023?
Since housing prices have already been declining in certain parts of the country, some experts predict that this trend will continue into 2023.
However, it’s important to remember that there are still many areas where house prices remain inflated—especially those with limited housing supply and high demand.
If you’re looking for a bargain in these areas— you’ll likely be disappointed.Check your mortgage options
What types of homes will be popular in 2023?
Since buyers are generally more price-conscious, they may prioritize buying properties that require less renovation and redesign.
This means that budget-friendly starter homes or pre-existing fixer-uppers in need of some TLC could be the most sought properties in 2023.
On the other hand, if you have the budget to purchase a more luxurious property, then you may want to consider investing in new-builds.
These homes are usually larger and come with modern updates like smart appliances or energy-efficient features—making them an attractive option for homeowners looking for convenience and style.
Housing inventory, however, is still expected to be limited. So buyers may be forced to sacrifice items on their wish list to get a property in their budget.
As far as areas expected to rise in popularity, the National Association of Realtors cites many cities in the Southern U.S. as hot markets to watch in 2023.
What kind of advice should homebuyers keep in mind?
If you’re looking to buy a home in 2023, then there are a few tips that could help ensure the process is stress-free and successful.
Stick to properties within your budget
Make sure to take into consideration all the costs associated with buying a home, such as closing costs, the down payment, and moving expenses.
Work with an experienced real estate agent
Ask around family and friends and find an agent who has your best interests at heart.
A good agent will be able to provide valuable insight into the current market conditions and help you find properties that meet your needs.
Shop around for the best mortgage rate
Rates are constantly changing. The federal funds rate is expected to continue to rist in 2023. Take the time to shop around and compare offers from different lenders before making a decision.
Check out our mortgage payment calculator to get a better idea of what you can afford.
The housing market can be unpredictable, but with some research and savvy shopping, you may find that 2023 is an excellent year to purchase your dream home!
Why should I invest in real estate?
Investing in real estate offers a plethora of choices.
If you’re looking for passive monthly income, purchasing a single-family residence will do the job and might even yield considerable returns when it comes time to sell.
If your ambitions are greater, consider investing in a strip mall—with hairdressers, pizzerias, pharmacies, and more, for example, who are all paying you monthly rent.
A more advanced investor can take investing to the next level by jumping into an apartment building with multiple units.
Being a landlord isn’t easy but it would grant you a continuous flow of rent payments from your tenants each month.
Despite economic uncertainty and higher-than-normal interest rates, real estate investment is still a great way to build wealth through capital appreciation and passive income.
Investing in housing has historically been one of the most secure investments, so if you’re looking to make a sound financial decision in 2023, then investing in real estate could be a smart move.
What can I do to ensure that I get the best real estate deal possible?
The most important thing you can do is arm yourself with knowledge.
Do your research, educate yourself on current market trends, and have a solid understanding of what kind of property you’re looking for and how much it’s worth.
Additionally, work with a realtor who knows the ins and outs of your local market and can advise you on how to get the best deal.
Finally, don’t be afraid to negotiate – it doesn’t hurt to ask!
GO Mortgage can help you navigate the 2023 housing market
2023 may present unique challenges for home buyers, but with proper preparation, research, and advice from experienced professionals, you’re sure to find the right home at the right price.
Ready to start house hunting? Get started with your loan today!
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