Plan on Becoming a Homeowner in 2023? Here's what you should know.
When preparing to buy your first home, it’s always best to speak to a local lender beforehand. Home financing experts are typically knowledgeable about local market trends and can help you with the preapproval process, which is helpful to have prior to looking at homes with a Realtor. If this is your year to join the ranks of homeowners everywhere, getting advice early in the process could be critical. A number of real estate trends on the local, regional and national levels will likely make the home-buying process a little more complicated than usual.
But don’t worry – you don’t have to do it alone! Origin Bank offers a number of resources for prospective homebuyers, including our financial calculators. We’ve also compiled a few key trends that first-time buyers should be aware of as they prepare to enter the market. Ask your agent and lender how these developments could affect your journey to a new home, and get ready to settle down.
The housing market is always in flux, and this year is no different. Low interest rates on existing mortgages and loans have encouraged many homeowners to stay put, meaning there are fewer houses on the market. Additionally, builders are facing challenges such as more expensive supplies, construction labor shortages, and more restrictive credit conditions due to the Federal Reserve’s inflation-combatting interest rate hikes. This has created a push-pull effect, and experts do not expect nationwide prices to decline anytime soon. This means that first-time buyers might need to save more for a down payment.
However, the inventory issue isn’t built to last, and prices can’t stay high forever. That’s why economists are predicting a housing market correction, during which the market gradually adjusts itself from the recent double-digit increases in home prices. But as always, real estate prices depend on the market you’re shopping in. While the West Coast has seen a string of weaker prices, the Southeast is going strong, with year-over-year gains in home prices, ranging from 4.7% to 7.7%. This consistent growth means the market is more stable, making homeownership a more sustainable investment over time.
It’s also important to note that foreclosures are trending up. However, experts do not anticipate a significant wave of foreclosures in 2023 despite the year-over-year increase. The data suggests that many existing homeowners have built up significant equity in their homes due to recent home price appreciation. But with the low inventory, there’s multiple offer situations that are in the seller’s favor. In this type of competitive market, buyers need to be prepared to act quickly when they find a property they like in order to beat the competition.
Buying your first home is one of the most exciting times of your life. Origin Bank is here to help make that dream a reality. Contact Origin’s Trusted Advisors today, and find out how we can help make sure you have as much buying power as possible.