It does not matter what the experts say about real estate. What matters first is where you are as a potential buyer. Do you fit the criteria that are required to buy a new home? How strong is your credit score? Do you have enough income? What is your current debt situation? You have to answer these questions before you even begin researching the current market to determine if now is the right time to buy or not. Lenders want your money, but you have to meet essential criteria in order to be a candidate for a new mortgage.
If you meet these criteria and you start researching local markets, you may feel that now is not the ideal time to buy. Prices are high, interest rates are higher, and more and more people are struggling to come up with the money to make a sufficient down payment. No, this is not the ideal time to buy considering the market, but when is the perfect time? You have to move forward based on your situation and not focus on just where the market is. However, that doesn’t mean that you cannot get some deals at this time. In fact, there are plenty of options that allow you to save big if you want to buy now.
Reasons To Buy A Home In 2023
Buying a home in 2023 begins with where you are as a potential buyer and the prices in the area you want to shop in. If you can borrow the money necessary to have a real shot in the area you want to buy in, you need to start hunting now rather than waiting because:
- Prices will only go down so much: Home prices are down a bit, but not as much as people would have hoped. These prices are staying strong and many wonders if they will go down again. In reality, buying now is smart because prices could go back up next year and even if they were to continue to go down, the decline may not be enough to make a major factor in your finances.
- Rates may go higher next year: The economy is proving to be stronger than most expected and because prices are not dropping, rates are not moving as quickly in either direction. If the economy proves to remain this strong, home buyers may have to deal with higher rates next year, especially if inflation goes up again.
- Increased chance to get a desperate seller: While people are deciding whether or not to move forward with buying a house, sellers are getting desperate. Worse for them, the only offers they are getting are from investors which means they are way below the asking price. This is your opportunity to work with a seller and save some money. Because you will be within reason of the asking price and are serious about buying, you have the upper hand over those who have had their property on the market for more than four months.
- You can increase your income faster: Your income-to-debt ratio will be a major determining factor on how much you can borrow. If you exceed the allotted amount, you cannot borrow being your own cap, unless you lower your debt or increase your income. Luckily, there are more short-term work options than ever with people making money working at their own pace, in their free time, delivering food, running errands or helping out at local businesses. Whatever ways you can find to increase your income needs to be considered because it can make a big difference on whether or not you get approved for your loan as well as raising the amount you can borrow.
- Compare the cost to rent: Getting an apartment is not ideal for you, not because you cannot find one but because the cost to rent an apartment is very similar to the cost of owning a home, as far as the monthly mortgage payments go. So, if that’s the case and you debating between buying now or not, keep in mind that you’ve already proven time and time again that you can afford that monthly cost. That means a mortgage payment will be within your reach each month and it’s a far better use of your money than renting.
Buying a home is a long and challenging process. The easiest way to have success is to work with professionals who understand your challenges and can work with you to help you find the home you want. Realtors offer amazing assistance and they can literally walk you through the entire process including who to work with to get a loan, local restrictions you need to know about, hiring inspectors and even what to expect throughout the entire journey. Their experience and guidance can help ensure that you get the property you want but also get the best possible deal on that property.
Over the years, the housing market has been one of the most reliable things Americans can invest in. Homes usually do not lose value but of late, people are not certain when to invest. However, we need to remind ourselves that one of the big reasons why prices have shot up so quickly is because of the lack of inventory. That’s a major factor to consider if you are wondering if now is the right time to buy or not. Buying now is smart, especially when you consider that there still is a lack of inventory out there and your options may be limited.
Realtors recommend setting a budget and then focusing on homes within that budget or slightly higher. Do not look at properties that are way out of your range right now because it will only waste your time and create expectations that other properties cannot meet. Understand your options, and what you want in a home, and then focus on how to get it. The process may take some time, but your realtor will be there every step of the way to offer their guidance and to help you get the property you really want.