The mortgage rate decline that brought back some prospective buyers to the market in the first month of 2023 has ended—at least for now.
Housing Market Forecast for March 2023
Home sales prices responded by continuing their downward slide. However, many economists remain mixed about how much more home prices will drop this year.
For one, the nation’s housing supply remains limited. Those who purchased homes in recent years at record-low interest rates are staying put. Moreover, new home construction fell again in January, compounding the longstanding inventory problem. Tight inventory issues, in part, are keeping prices from dropping off even further, which is perpetuating affordability challenges for many buyers.
Though home prices remain high year-over-year, they’re not as eye-popping as they were in early 2022. Even so, how much further home prices dip in 2023 will likely depend on where mortgage rates go—and whether or not they continue trending down.
Housing Inventory Outlook
Home prices are still increasing, but not as rapidly as they have been.
The good news is that interest rates are dropping. The bad news is that housing prices are still increasing, so even though interest rates are down, it's still hard to get a loan. Using The Lynch Group and our preferred lenders, we do our best to get you the best outcome. between utilizing FHA loans, Va, etc, we stretch our knowledge and get you the best in the market.
When Should I Buy a Home
Buying a home is a huge decision, but it doesn't have to be overwhelming. Follow these tips from experts on how to get started.
- Use a mortgage calculator to estimate your monthly housing costs based on your down payment and interest rate. This will help you determine if you can afford the monthly payments and still afford other things like groceries and utilities.
- Try not to predict what might happen this year when it comes to home prices. "Buyers sitting on the sidelines today in anticipation of lower prices tomorrow may end up disappointed," says Neda Navab, president of the U.S. region at Compass, a real estate tech company. "Instead of waiting for much lower prices, experts suggest buying a home based on your budget and needs." If you find a home you love in an area you love, and it also fits your budget, then chances are it might be right for you. However, if you make too many sacrifices just to get a house, you may end up with buyer's remorse—potentially forcing you to offload the house later down the line if unforeseen circumstances arise (like a job loss).
