The real estate market is constantly changing. The homebuying process is different now than it was even a year ago, leaving many to wonder whether they should even consider buying a house in 2023.
For anyone feeling discouraged, it’s important to take a step back and look at the marketplace objectively. There are some really great benefits to buying right now, especially in award-winning new home communities by Hillwood. Here are just a few of the reasons why you should buy now.
The buyer-seller market is equalizing.
Just a year ago, we had a strong seller’s market with intense competition amongst buyers to get the home/lot/location of their choice. This is no longer the case. There are more homes and building sites to choose from and less pressure to make a quick decision or buy a home before someone else grabs it.
As Yahoo! Finance points out, many housing experts expect to see increasing equilibrium between buyers and sellers, resulting in a fairly “even market” where neither has the clear advantage.
Home prices are decreasing as demand stabilizes.
Another point for the ‘why you should buy a home now’ camp are falling home prices. As demand has cooled, so have prices. This means no more paying way over asking price and competing with many other offers just to have a chance.
“Markets in roughly half of the country are likely to offer potential buyers discounted prices compared to last year,” says Forbes, with home prices dropping roughly 11% from their high mark in June of 2022.
More good news: Builders at new home communities have available inventory and want to keep product moving, so they are offering incentives to buyers! That means you can get a great deal in growing communities across Texas, which many think is the best place to buy a home right now for many reasons.
Mortgage rates are still at historic lows.
It’s true that mortgage rates have gone up versus a year ago, but they are still at historic lows and at the beginning of 2023 they dropped to their lowest point in months. Compared to the double digit highs in the 1980s when rates peaked at 18.63%, 30-year fixed rate mortgage rates are still very reasonable for many prospective buyers.
Ask any real estate or lending professional and they’ll tell you the same thing: “Marry the house, date the rate.” Meaning, when you find the home you love, take action. You always have the option to refinance if rates drop in the future.
Loan options are plentiful.
If you’re still feeling discouraged by the interest rates that are currently available, know that you have choices. The Consumer Finance Protection Bureau recommends speaking with a lending professional about financing options like:
- Adjustable Rate Mortgages (ARMs), a loan type which has, “a fixed interest rate in the beginning and then adjusts annually or every six months.” For more information see the CFPB’s Consumer Handbook on Adjustable Rate Mortgages.
- Temporary buydowns, a structure in which, “the mortgage payment is lowered for the first year or two in exchange for an up-front fee or a higher interest rate later.”
Again, it’s important to work with a trusted, qualified mortgage professional who can help you see which mortgage products and financing structures will be less expensive over the life of your loan.
2023 Homebuying Q&A:
Should I buy a home now or wait?
While this is a personal decision that should be made with your real estate agent and finance professional, housing experts say now could be a beneficial time to buy and take advantage of new home community incentives before rates increase.
Will 2023 be a good time to buy a house?
With a well-balanced buyer and sellers’ market, 2023 is projected to be a much calmer, less competitive time to buy a house than in the last few years.
Why should I buy a house now?
The Federal Reserve board, who controls the nation’s interest rates, is scheduled to meet eight times in 2023. While no one knows if they’ll continue to raise rates to offset economic realities like inflation, for the time being mortgage rates are steady and falling, so it could be a good time to act.
Become a Hillwood Communities Homeowner in 2023
Still asking yourself if 2023 is a good year to buy a house? Keep in mind that purchasing a home in a growing area can be a great way to make a smart investment and secure enduring value for your family. Hillwood Communities has new home communities in some of the most sought after housing markets in the country including DFW, greater Austin, and greater Houston. These booming areas are likely to experience continued growth, even in “down” markets, and a great long term return on investment.
Many of Hillwood’s lifestyle communities have available homes and homesites with builders who are offering impressive buyer incentives. You can look without committing by exploring some of Texas’ most life-enriching communities right from where you are. Get started on your homebuying journey today!