The last few years have been quite confusing for buyers, sellers, and industry experts regarding the volatility of the housing market.
As 2022 came to its conclusion, transactions and price appreciation have continued to drop, signifying a healthier market for 2023. So, is now the right time to jump into the market and buy a home?
This article will cover all the reasons we think now is a great time to do so.
The number one indicator of whether purchasing a home is a good idea is the average sales price of homes currently on the market. Many industry experts have been predicting slower price appreciation in our future since back in summer of 2022. This means that homes will continue to rise in value, just at slower rate than before.
Recent data from the DFW market has confirmed these predictions, as local housing prices rose an average of 3% last year. Showing that while appreciation is slowing, it doesn’t appear to be shifting into depreciation any time soon. This is likely due to the strong employment market in the area.
Demand for homes is still incredibly high with the booming population of DFW and the economy to support it. While months supply of inventory is on the rise at 2.6 for the month of December 2022, that is still well below what is needed for a balanced market. All these factors point to a strong probability in that the prices you are seeing now, are the lowest you are likely to see all year.
The worst seems to be behind us as far as mortgage rates are concerned. Throughout 2022, rates were steadily increasing throughout the year. However, rates have been declining since November of last year, going from a peak of 7.08% to 6.33% by the end of last week.
Industry experts are uncertain about what the rest of the year has in store for us as far as rate changes are concerned. Some predictions indicate more drops to come, while others predict increases due to the confusion surrounding the effects of inflation on our economy.
What seems most likely is that rates will remain relatively stable thought the year, bouncing between 6% to 7%. With the recent drops that have taken effect and the uncertainty regarding future drops, now is a good time to lock in the current rate.
While we are still currently in a seller’s market due to the months supply not being able to keep up with the current demand, buyers are able to negotiate and request concessions that would have been seen as unreasonable just a few months ago.
This is because the market is less competitive now than it was previously. Sellers are receiving less offers and no longer have as much leverage over buyers as they used to.
Some concessions to look for as a buyer include money for closing costs and mortgage buydowns.
Use these advantages over sellers to secure a great home, all while remaining within your budget.
January 2023 is a great time to purchase a home.
Home prices are typically lowest at the start of the year, and you’re less likely to be outbid due to fewer home buyers in the market.
You are also more likely to close faster while the market is slow.
If you’re considering jumping into the market, start by evaluating your finances and check for any programs that may be able to assist you.
Working with an established REALTOR will help ensure you are adequately prepared and not missing out on any deals.
At M&D Real Estate, all our agents are rated 5 Stars.
Please do not hesitate to reach out to us as we are always looking to serve you with any and all of your real estate needs.
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