Is Now A Good Time To Buy?
It's the (multi)million dollar real estate questions. When advising my buyers on home purchase plans in 2023, we break down that question into these three factors:
First and foremost, is now a good time for YOU to buy? Are you able to afford a home purchase and the monthly expenses that accompany it? What is your motivation behind buying? Focusing on when you are ready in both your personal and financial lives is a crucial first step before considering any outside factors.
What will happen with interest rates? Interest rates have increased exponentially since their historic lows from a year ago, and there is much speculation about when rates will come down (or if they will continue to rise into 2023). But if you are ready to buy, then the current rates are what you're stuck with (no use living in the past). So once you decide to buy and are at peace with the current rates you will purchase your home at, I urge you to think about rate fluctuations like this:
If rates go up, you'll be happy you locked in a lower rate!
If rates go down, you can refinance!
Will home prices go down? Home values have already dropped from their Spring 2022 highs, and home values are expected to remain relatively consistent this year. Once interest rates begin to drop, buyers will start to flood the market again, and home values will undoubtedly jump. Buying now means locking in a lower purchase price and property tax base (+ being able to refinance later).
To summarize: For those motivated to buy in 2023, I predict it to be a favorable market for home buyers.