Image Source: Getty Images
What’s the short answer? perhaps.
Key Point
- Due to housing market conditions, home prices and mortgage rates, early 2023 is a bad time to buy a home for many.
- However, there may be exceptions.
- If you’re really financially prepared and have a home in stock in your area, buying now might be the right time to go.
Buying a home is something you want to do under the right conditions. After all, you’re making such a big purchase that it could pay off in the next 30 years.
The purchase also impacts quality of life on a daily basis. That’s why it’s important to buy at a time when you can get a home that fits your needs at an affordable price.
But these days, ticking those boxes is easier said than done. In fact, according to her latest Fannie Mae Home Purchase Sentiment Index, 76% of her consumers say it’s a bad time to buy a home. And on a year-over-year basis, the index is down 13.2 points, which means that a year ago, fewer consumers thought now was not the time to buy.
So are today’s consumers right about homeownership? In most cases, yes.but that doesn’t mean all Buyers should put their plans on hold.
Why Most Buyers Should Probably Wait
There are three factors currently working against prospective homebuyers.
- limited stock
- Rising house prices
- high mortgage interest rates
The housing market is still severely understocked, which is driving home prices higher. And whenever there’s not enough supply to meet demand, prices tend to go up. I’m here.
MORE: Check Out Our Picks for the Best Mortgage Lenders
But limited inventory doesn’t just mean higher prices. It can also mean that you can’t find a suitable home, which is a big problem as well.
And then there’s home loan rates, which rose sharply in 2022 and remain at their highest levels in 20 years. The combination of high borrowing rates and home prices makes home ownership unaffordable for many buyers.
There are exceptions to the rule
While general Not a Good Time to Be a Homebuyer, That Doesn’t Mean you We must withdraw from the market and suspend our plans. You may be in a financially favorable environment. You have a lot of savings, good credit, and a good enough salary to fully cover your mortgage payments. We also have a fair amount of inventory in the area you want, so we may be showing you a home that fits your needs.
If that’s the case and you’re ready to make a home offer, do it. , probably worth the wait.
At some point, housing inventory will tend to rise and home prices will likely fall, making mortgages more affordable. It may not happen in 2023, but if you can wait patiently, you may be able to get your dream home at a price that won’t put too much stress on your budget.
