It looks as though interest rates will settle in somewhere below 6%. Rate predictability will benefit both buyers and sellers, allowing parties to make decisions reliably. Continued lower inventory of homes on the market will keep demand in play, but longer market times will give buyers a chance to consider their purchase (and make better decisions).
Timing the market is hard, or impossible.People who think they timed the market most likely got lucky. And a market in extremes (crazy sellers market or heavily weighted buyers market) brings undue pressure on one party or another.
2023 is the right time to buy if:
You plan to be in your home three or more years.
Home ownership is in your life plan.
You want to lock in your housing costs and have control of your environment.
You need to sell to buy. It is reasonable to expect to get an offer accepted subject to selling your current home. The extreme sellers market of the last few years left little to no opportunity for those who had to sell to buy. Now is your time.
You don't make large financial decisions quickly and want time to think about such a major purchase. 2023 should give buyers a bit of time in which to contemplate their choice and purchase.
You want the opportunity to have your prospective home inspected and evaluated. The 2023 market should be balanced enough that buyers can have inspections and perhaps even negotiate repairs and concessions from the seller.
You'll use a lower down payment loan and don't have the resources for bidding wars and bridging appraisal gaps with cash reserves.
Selling in 2023:
Sellers will still be in the drivers' seat in this market. You'll just be driving a BMW compared to a Ferrari. 😂.
It remains important for houses to be priced well (not aspirationally) and thoroughly prepped for sale. Consider getting an inspection in advance of selling, and addressing the issues on the inspection. Have the furnace serviced, tend to those maintenance jobs you might not have gotten to. Clean, paint, power wash. be sure your water heater has two seismic straps. Be sure your smoke and CO detectors are in compliance with your city/state rules (in Portland there must be a smoke detector inside each bedroom, and CO detectors within 15 feet of each bedroom, they must be less than ten years old). Gather maintenance, repair and remodel records and recipients. Find that paperwork from the oil tank that was decommissioned years ago. Remove LOTS of furniture and belongings from the house, and consider having it professionally stage. All that prep will pay off.
I'm glad to give you direction and ideas for house prepaid even have a few suggestions for service providers.
As always, I'm here to discuss your specific situation and help with your real estate plan.
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