2022 was a whirlwind of a year with mortgage rates surging at a fast clip to a 20-year high before dipping again. Similarly, home prices rose to historic highs, but they too began to lose steam as demand cooled. The breakneck pace of the housing market had homebuyers scrambling to find affordable homes and lock in favorable rates.
This year, many experts are predicting a more stable marketplace with interest rates hovering around normal or almost normal levels. But if 2022 is any indicator, homebuyers should be prepared for unexpected changes so they are not caught flat-footed. Here are some tips to get you on the right track for the 2023 housing market:
Get Pre-Approved: Buyers heading into the 2023 housing market should not overlook the importance of a pre-approval letter for a mortgage before beginning the house hunt. A pre-approval letter not only helps you understand how much home you can afford and gives your offer more credibility, but it also helps speed up the process toward closing.
Make a Lower Offer: As the housing market cools, home shoppers have more control over the prices they are willing to pay for a home. Though they still have to contend with higher values, slackened competition means that properties may linger on the market for longer periods of time. If you notice a home you like has been sitting on the market for a few weeks after listing, this is your cue to make an offer at a lower price.
Perform Due Diligence: While in most areas of the country it is required that the seller disclose the known defects of the property, it is often up to the buyer to inspect all details that may affect their purchase of the home. It’s a good idea to have the home inspected, research the ownership history, speak to an insurer and your mortgage planner prior to closing.
If you have any questions or would like to learn more about the homebuying process, I would love to explain it to you. If you are interested in purchasing a new home or refinancing your current home, call me today to set up an appointment.
