The 2022 real estate market hit historical highs in home prices through the first half of the year, before seeing a cool down beginning in the third and fourth quarters. A shift from a sellers market to a buyers market, positions 2023 to be an interesting time for buying a home. There are many predictions about what home buying will look like in the coming year, given the rise in interest rates and low inventories. That said, there is also a continued influx of new residents, a strong job market, along with higher wages positioning both Arizona and Nevada to expect demand for homes to remain steady. For those considering making a move, here are 4 tips for home buying in 2023.
1. Educate yourself
The education phase of buying a home is often mistakenly overlooked. For a first-time homebuyer, this step is essential. It’s important to understand the process and the current prices in the market to avoid overpaying. Many states offer classes that teach the basics of home buying, and a knowledgeable real estate agent is a great resource as well. Don’t be afraid to ask questions as there are many steps to buying a home. Understanding what a home buyer needs to make and offer and secure funding, will help ensure a smoother transaction.
Low inventories largely contributed to the seller’s market in the first half of 2022, which is why it was difficult for home buyers. When demand exceeds supply, there are more buyers than homes available, which drives prices up. In 2023 the projection in the residential market is a shift to more of a buyer’s market, but it can vary based on location. Researching the stats in local cities and neighborhoods, looking for an increasing supply of homes and the time homes are sitting on the market longer are good indicators for buyers. Under this scenario, prices typically begin to level, and even come down, giving buyers more negotiating power. Time will tell. And until then, keep watching and researching to stay informed.
2. Find a real estate agent you trust
Arguably one of the most important tips in home buying is to work with a real estate agent you trust. Having someone knowledgeable and honest guiding and representing you through the purchase process is invaluable. It is key to have someone you trust negotiating on your behalf, as the agent has the power to make or in some cases break your homebuying experience. To find the right agent, interview several candidates and ask for references. The best referrals are most often from family and friends who can speak to their own experience.
3. Research mortgage options
With high interest rates going into 2023, researching mortgage programs is more important than ever to help ensure you get the best rate per your qualifications. Arizona and Nevada both offer first-time homebuyer programs for those who fit specific income criteria. Other mortgage programs to look at include: USDA loan program, FHA loan program, or a VA loan which is available to active and retired U.S. service members.
4. Trust the process
The unknowns regarding the future of the residential real estate market, can make home buying an overwhelming process. In some cases, it can feel hopeless. Before getting frustrated, it’s best not to rush into buying a home. After all, it is likely the biggest purchase you will ever make, so taking the time and doing your homework is important as you look at making the best decision for you.
When you are ready to begin the home buying process, Landmark Title can help you with all your title and escrow needs. Contact us to have a knowledgeable member of our team answer any questions you may have about the process.