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Should You Wait to Buy until 2023?

Here are three things buyers should consider before leaving the market. 

If you’re a buyer in this market, you probably understand how difficult it can be to find a home. Supply is scarce, so buyers are forced to compete for what little inventory there is. Should you get out of the market and wait until conditions improve? Here are three reasons why you shouldn’t wait to buy:

1. Economists don’t expect home prices to fall anytime soon. Even if prices increase at a normal rate instead of the crazy pace we’ve seen recently, your next home will still be more expensive in 2023. The truth is that people continue to move to our area from all over the country, and demand won’t fall for a long time. 

“Buying now is worth it to secure a home at a lower price.”

2. There won’t be a wave of foreclosures. A ton of foreclosed properties hitting the market would give you cheaper buying options, but it isn’t going to happen. Homeowners have tons of equity, so even if someone is in trouble, they can just sell their house on the open market. 

3Interest rates are rising. Despite multiple interest rate hikes, inflation has not decreased. We are still seeing prices go up. As a result, the Federal Reserve will likely continue to raise interest rates. Even a small increase in interest rates can have a significant impact on your monthly payment. For example, if your interest rate increases by half of a percent, the cost of your loan goes up 6%. If home prices are expected to jump 4%, and loans are going up half a percent, waiting until 2023 will cost you at least 10% more. When you consider rising interest rates with rising home prices, it’s easy to see that the longer you wait, the more expensive your home purchase will be. 

I know it’s hard to be a buyer right now. You have to be creative, persistent, and patient. However, it’s worth it to secure a great home at a lower price. 

If you have questions about today’s topic or anything else, please call or email me. I am always willing to help!

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