While the past few years have been challenging for the housing market, experts are forecasting a turnaround in 2023. This is good news for current homeowners as well as those considering buying a home in the near future. Let’s take a closer look at what this forecast means for the housing market and what factors are contributing to this prediction.
This is good news for homeowners and those considering buying a home
Homeownership is one of the key markers of financial security, and it’s great news that this accessibility is increasing. That said, buying a home is a huge commitment, so it’s important to consider carefully whether or not it’s the right step for you. The good news is that with careful financial planning, the dream of homeownership can be achieved by many more potential buyers. It may take time to save up enough money for a downpayment, but combined with historically low mortgage rates and access to resources like FHA loans, more people have an opportunity to obtain the peace of mind that comes with owning your own home.
The reasons for the predicted turnaround include low interest rates and an increase in population growth
With low interest rates and an increase in population growth, the economy is poised to reverse a prolonged decline and turn around for the better. This follows years of declining growth leading to increasing rates of unemployment and inflation. While many businesses have seen difficult economic times in recent years, the outlook is now beginning to brighten as new jobs become available to meet the rising population needs. Additionally, the low-interest environment provides much needed fuel for companies with capital requirements to expand their operations and make investments that drive job creation and economic activity. With a more productive economy, more citizens are able to increase their quality of life by either starting businesses or working full-time with higher wages. The combination of low interest rates and population growth looks to provide a spark of hope for many Americans across this great nation that eventually delivers robust levels of employment, wage growth, and productivity gains in our economy.
Home values are expected to rise slowly at first, then gain momentum over the next few years
The real estate market is buzzing with optimism as home values are expected to slowly inch up over the coming years. This gradual increase in prices will give those already looking to buy an ideal opportunity to get a great value while those who are not in the market yet can rest assured that their homes are likely to be worth more in a few years. With increased confidence, more people may decide now is the time to make their move and invest in a new property. As this occurs, the upward momentum of value growth should start to pick up making homes more valuable with each passing year.
This is a great time to start thinking about buying or selling a home
Now is the perfect time to begin considering the process of either buying or selling a home. The market for housing remains strong across the nation; therefore, potential buyers and sellers are highly encouraged to take the next steps towards their real estate goals. When embarking on a housing journey, it’s beneficial to take advantage of current trends within the market and consult with an experienced industry professional who can help ensure that all transactions go as smoothly as possible. With careful planning and communication, this is an optimal moment to make decisions while reaping financial rewards in the long run.
If you’re thinking about making a move this year, a turnaround in the housing market could be exactly what you’ve been waiting for. Let’s connect to talk about the latest trends in our area.