Increased competition and high home prices created a difficult situation for first-time homebuyers over the past couple of years. Many who failed to buy at the beginning of the pandemic eventually became priced out and were forced to postpone their plans of homeownership. But now home price growth rates are slowing down. Prospective buyers are curious to know, will the tables turn in 2023? Below, we’ve discussed the matter in detail.
When to Buy Your First Home
Buying a home is a major investment. Before you move forward, you’ll want to make sure that you’re in a good position to buy. You may be ready to purchase a home if:
- You have a reliable income
- You haven’t had any recent changes in employment
- You’ve saved money for a down payment and closing costs
- Your credit is in good shape
- You have an emergency fund set aside
Will It Be a Buyer’s Market in 2023?
Another good time to buy your first home is when it’s a buyer’s market. A buyer’s market is a situation in which prospective buyers have an advantage over sellers. Typically, this occurs when the supply of available homes for sale exceeds the demand.
At this point, it’s hard to say for certain whether 2023 will be a buyer’s market. But certain signs have indicated that things are headed that way. For example, home value growth rates are finally slowing down. Mortgage rates have gone up, leading to decreased competition and demand.
A recent survey conducted among Zillow’s experts found that approximately 56% of the panel expects a shift toward a buyer’s market sometime in 2023. 24% believe that it won’t happen until 2024. If this is true, the market will likely favor buyers in the near future.
Challenges for First-Time Buyers in 2023
All this being said, there are still some challenges that first-time homebuyers are expected to face. Rents are higher than normal, impacting many people’s ability to save money for a down payment. Additionally, while home inventory is steadily improving, it’s still low compared to what it was before the pandemic.
These are important factors to keep in mind. As we head into 2023, it may be a good idea to consult a professional who can assist you with your homebuying journey. Having an expert on your side who can help you strategize and overcome unforeseen challenges can be immensely useful.
Get in Touch
If you’re a first-time homebuyer, we’d love to hear from you. Reach out today to discuss your financial options with an expert.