It's no secret that the housing market is in flux. After two years of unprecedented change and an unbalanced seller's market, things are starting to shift once again. What does that mean for both buyers and sellers? Buyers can expect more variety and selection, while sellers must be more competitive in prices and terms.
This can be a confusing time to navigate the world of real estate, so it's important to have expert guidance as you move forward. Our experts at Chatham Homes Realty created this guide to help you understand the factors at play, so you can decide what's next for you.
Will 2023 Be a Buyer's or a Seller's market?
There's no question that the past few years have been a strong seller's market. Buyers faced stiff competition, leading to bidding wars that drove prices up. However, that's been changing recently because of a few important factors.
Part of the reason sellers held so much power recently was a shortage of available homes on the market. This was because of a handful of unique factors. Supply chain issues delayed builders from constructing new homes at the same rate. Remote workers discovered that they could do their jobs anywhere and bought houses in less expensive areas, increasing prices.
Now construction has recovered to the point that it has outpaced the demand. On top of that, homeowners are less likely to sell because interest rates are high, and they don't want to lose their low rate to only replace it with a higher one on a new house.
Is This Making Homes More Affordable?
When the supply of a product increases, the prices typically go down. On average, housing prices are a little lower than they were just last year, but that effect is being blunted by other things. High mortgage rates are one key factor. Prices may be falling slightly, but not enough to make up for the rate increases.
If inflation levels off and interest rates drop, it may improve prices for buyers. On the whole, however, the benefits aren't expected to change the picture very much on their behalf, at least as far as costs go.
Should I Wait Until Later in 2023 to Buy a House?
All of this uncertainty may cause some understandable hesitation in the minds of potential buyers. Yet it's important to know that upheaval can also be an opportunity.
It's been said that as a buyer, you're not purchasing the market; you're buying a house. The right agent can help you navigate the current environment and find the property you're looking for. You want to work with someone who's used to the ups and downs of the housing market and knows how to reach the best deal no matter what.
Keep two factors in mind if you're worried about inflation and interest rates. First, home ownership is one of the most effective ways to weather inflation. Cash will lose value as inflation rises, but property value grows. Second, interest rates may be high today but historically have always come down again. You will likely have the opportunity to refinance when they do.
Most importantly, if you're ready to buy a home, that has much more to do with your life than the market. With the proper guidance, you don't have to let the current environment block you from taking that next important step.
Chatham Homes Realty is Here to Help You Find The Best Options
If you're ready to explore home ownership, don't let the market changes hold you back. The experts at Chatham Homes Realty, in Siler City and Pittsboro North Carolina, have dealt with changes like this before, and we are confident that we can help you today.
For more information, contact us and see what we can do for you.
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