Is 2023 a Good Year to Buy a House?
If you know one thing about the 2022 real estate market, you know it sure was a turbulent one. Would-be home buyers are entering 2023 with a healthy dose of skepticism. They’re not going to buy a house sight unseen, and they’re not going to bid 20% over-asking and hope for the best.
If you’re planning on buying a house in 2023, it helps to be prepared.
Here are 9 real estate tips for buyers.
Be patient
Inventory is down right now. So, it’s easy for homebuyers to feel anxiety when they check out the local real estate market and there are only five homes available that fit their “must have’s.”
The key here is not to panic and rush into anything.
Buyers who heard about the crazy competitive market of last year should be advised: homes are now sitting on the market for longer, so if you’re not sure about a property, you likely have time to think it over. November ’22 (the latest month on record) saw homes on market for a median of 56 days – that’s a week longer than the same time last year (49 days).
Shop around for a loan
Not enough home buyers know that shopping around for a loan and exploring multiple loan options can help lower your interest rate and/or monthly payments. With the mortgage rate far higher than it was last year, it’s prudent to know your options.
Lenders offer slightly different rates from each other, and surprisingly it’s not always the big banks who offer the best rates. Buyers today can also explore alternative loan options, like ARM loans.
While many people have a gut reaction of “heck no!” to adjustable rate mortgages, what’s important to note is that ARMs are front-loaded with a set fixed rate.
A 10/1 ARM, for example, comes with a 10-year fixed rate. For many people buying a starter home – who weren’t planning on owning their home for the entire 30-year term – this is more than enough time. In the meantime, you’ll benefit from the lower fixed rate ARMs receive.
A lot of would-be homebuyers are wondering how mortgage rates will shake out in 2023. The truth is, no one knows for sure. We saw plenty of industry experts under-predict last year’s meteoric rate rise, and the same will likely be true this time around.
Call us at Crossland Title, Inc.
Crossland Title Inc. is a Knoxville title agency providing full-service real estate title solutions. Crossland Title Inc. makes your closing seem effortless.
With more than 38 years of experience in the real estate and title business, owners Pam Rice and Beth Crox have built their reputations upon the virtues of personal service and integrity. They believe that reputation as an honest and reliable business is the recipe for success.
