Your Ultimate Guide to Buying a Home in Spring 2023 - Homefinity (2023)

If you're planning on buying a home in the spring of 2023, you might be thinking about the big shift in real estate that year.

After two years of a pandemic-driven home-buying surge that included bidding wars, inventory shortages and large price increases, things started to cool down in late 2022.

The housing market saw fewer sales and slower price increases last year due to inflation and rising interest rates.

This transitional period is still largelycontinuousin 2023. Sellers still have the upper hand due to housing shortages in certain areas, but no one predicts a sudden drop in home values ​​or prices.

However, enthusiasm for 2022 has certainly waned and many analysts are expecting a slightly more balanced market, which should benefit buyers.

But before you start looking for a home now that warm spring weather is approaching, you need to understand the new basics of home buying in 2023.

Will low housing stock continue into spring 2023?

Even before the pandemic, the housing market was severely stock-depleted - there weren't enough apartments to meet buyers' demand. This trend continued to strengthen throughout 2020, but is now beginning to intensify.

Inventories have been rising since May 2022, with the biggest monthly increase since inNovember46% higher in 2022 than the same period last year.

Let's look at some strategies for the Spring 2023 homebuyer market.

Buying a Home Spring 2023: What to Do If Inventory Is Low?

Homebuyers in a low inventory market need to act quickly. The most coveted properties are likely to be pulled off the market quickly.

EmNovemberIn 2022, the average availability time for a home was just 56 days, 18 days shorter than the pre-2020 average. Given the limited time available to find a home in a tight market, there are a few ways to accommodate. The new living realities.

make appointments

To get the home you really want, you have to be willing to give up some features you don't really need. Find a home that suits youBudgetin the most desirable area and change it over time.

Expand your search with the right realtor

Is the location you chose too hot? Some areas that are not as popular with property buyers may have a hidden gem that fits your criteria and at a lower price!

Working with a realtor who knows the area well is the ideal way to find a great home that fits your financial plan and lifestyle.

Start the pre-approval process as soon as possible

Get pre-approval foryour mortgageBefore you begin, your search for a home is vital in any market, not just a low-inventory sellers' market.

It is even more important when the housing supply is limited. If you don't have your pre-approval before entering this market, you could lose the home you want to another buyer who did the right thing and received pre-approval.

Buying a house in 2023: what to do when prices rise?

ANDNationalThe median home price for active listings increased 11% year-over-year to $416,000 in November 2022.

This rate is slower than the 16% average growth rate in June and July, suggesting that the pace of house price growth may be slowing, but 2023 is likely to remain a year of growth.

As demand for housing remains strong and housing shortages continue, house prices are unlikely to drop dramatically. There may be small price drops from month to month, usually after the summer highs. However, prices are likely to remain above their original 2020 levels.

Know your limits and stick to them

If you want to buy in this market, you need to know how much home you can really afford. Make a commitment to stay within that budget. Don't give in to pressure to buy because others are pulling good homes off the market.

And definitely don't get caught up in the excitement of any bidding wars. It's the fastest way to break your budget. Accessibility and your true connection to home should be your main focus.

Make sure your house payment does not exceed 25% of your total after-tax monthly income. Your calculations should include principal, interest, property taxes, homeowner's insurance, HOA fees and, for less than 20%, private mortgage insurance (PMI).

Save more for a deposit

Save at least 20% on a deposit to avoid PMI.

While first-time homebuyers will often opt for a lower percentage (5% to 10% is usually doable), PMI will be part of the equation. Disciplining your expenses and income to get a higher down payment can also save you a significant amount in future interest payments.

Invest your savings in a high-yield account for an advance

One positive aspect of inflation and the Federal Reserve's response was higher interest rates on savings accounts.

Save your deposit contributions to a high-yield account if you haven't already. Just make sure you have instant access to your funds when it's closing time. Some online savings accounts take three days to deliver your money when you withdraw it.

Set your mortgage rate

Once you've found the right lender and submitted an application, ask them how to set your interest rate. It may not be the time to risk having your monthly mortgage payment skyrocket just before you're ready to close.

The completion of the purchase of the house in the spring of 2023

Regardless of what the housing market is doing at any given time - a sellers' or buyers' market and everything in between - there's never a perfect time to buy a home.

Whether you are considering buying a home or refinancing a home, everyone has different goals and objectives.

At Homefinity, we know your mortgage needs need to fit your life. Whether you're looking for a specific mortgage product or need more in-depth advice, someone who can help you navigate your way can be invaluable.

Our nationwide loan officers have decades of experience and can help you with your home investment.

From start to finish, we offer friendly, reliable advice and proven analytical understanding to provide you with the most suitable customized plans.

To reachContact us and start finding the right home loan that you can pay for the home you deserve.

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