In recent years, obtaining a house has become increasingly difficult due to affordability issues. However, the conditions related to housing costs are set to improve in 2023! Selma Hepp of CoreLogic predicts better prospects through various factors like interest rates and income levels that will drive up purchasing power – offering hope for those hoping to purchase their dream homes this year!
Mortgage Rates
The housing market has been swaying with mortgage rates in recent months. Last year, the spike of over 7% had many would-be buyers pausing their plans – but now there’s some reprieve as rates are dropping anew!
George Ratiu, Senior Economist at realtor.com, explains:
“Let’s rejoice in some good news… mortgage rates are falling. “With inflation showing a tangible slowdown, I do expect mortgage rates to follow suit in the months ahead.”
Every little bit counts here, and it can have a big effect on purchasing power, according to Nadia Evangelou of NAR; She sees these changes as part of an overall trend that will shape the housing landscape further ahead.
Last year’s mortgage rate spike may have put a damper on your homebuying dreams, but now could be the perfect time to dive back in! Get ahead of this opportunity and work with knowledgeable experts who are up-to-date on current rates – they’ll make sure you get the competitive edge.
Home Prices
Home prices have generated a great deal of public attention over the last several years, particularly due to their exponential increase during 2020. As 2023 approaches, it will be interesting to examine how these values develop and affect both homebuyers and sellers alike.
Lawrence Yun, Chief Economist at NAR, says:
“After a big boom over the past two years, there will essentially be no change nationally . . . Half of the country may experience small price gains, while the other half may see slight price declines.”
Home prices may remain stable, experience minor gains, or even experience slight drops, depending on where you live. For reliable information about your local real estate market and how it affects affordability, contact an experienced professional for insight.
Wages
As wages increase, homebuyers are being presented with a new window of opportunity. While there will still be affordability issues this year, the forecast for 2023 is much brighter; bringing welcome relief to exhausted buyers who have faced increasing difficulties in recent times.
As Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), says:
“Rates are expected to move lower for the year, and home price growth is expected to cool, both of which will help address affordability challenges.”
Conclusion
Don’t let questions stop you from exploring your homeownership dreams – get in touch to find out how close you could be! With the help of a reliable lender, discover all the financing options available and make owning a home more achievable.
