The pandemic is over!

And although we’ve seen a tremendous increase in home prices and mortgage rates in the last 2 years, we’re finally seeing some improvements this quarter. 

However, with all these improvements across the board, you still can't be sure if these prices will continue to drop all the way until 2024, or if it is just a temporary sigh of relief before prices rise again.

If you’re unsure about buying a home in 2023, we have 5 good reasons that you can look at to determine if this year is a perfect fit for you to do so.

1. Stabilized House Prices

2020 and 2021 were tumultuous years in the housing market due to the pandemic. The housing market saw a rapid increase in demand for homes, leading to a surge in house prices. 

However, in the last quarter of 2022, the market has finally started to stabilize, and house prices have become more reasonable. 

Many of the factors that led to the surge in prices, such as supply chain issues and limited inventory, have improved slightly, making it easier for buyers to find their dream homes without breaking the bank.

But don’t expect it to go way lower than it is, as the real estate market tends to shift quickly and you might find yourself paying more if you haven’t made any plans to buy yet.

2. More Homes for Sale

The pandemic caused a shortage of homes for sale as many homeowners decided to hold off on selling. 

However, now that the pandemic is over and it’s safer to show houses around, the number of homes for sale has increased.

This means that buyers have more options and are less likely to face opposition in bidding wars, making it easier to purchase the home they want.

3. Dropping Mortgage Rates

One of the biggest advantages of buying a home in 2023 (specifically this 2nd quarter) is the current low mortgage rate drop.

Mortgage rates are dropping (for 3 weeks straight - currently at 6.32% nationwide according to Freddie Mac), making it an excellent time to join the housing market again.

Furthermore, many lenders are offering discounts to first-time homebuyers, which can make it easier to qualify for a mortgage and get into your dream home (with incentives amounting to at most 1.75 percentage points according to Fannie Mae and Freddie Mac). 

Remember that when those rates do drop, the prices will rise again. Don’t worry about missing out on lower mortgage rates if it comes down to it after a couple of years as you can always refinance your home! 

4. It’s now a better alternative than renting in the long run

Many people believe that renting is cheaper than owning a home, but in reality, the opposite is often true - especially after experiencing the pandemic.

In addition to investing in a home that would increase in value instead of just throwing money around, you’ll be fully secure knowing that you won’t be evicted from your own home or face a sudden increase in rent due to events out of your control.

With mortgage rates dropping and house prices stabilizing, owning a home can be more affordable than renting. And, owning a home allows you to build equity and create long-term wealth.

5. Improved Quality of Life

Owning a home can provide a sense of stability, freedom, and security that renting cannot. When you own a home, you have control over your living space and can make changes as you see fit. 

You also have the freedom to personalize your home and create a space that reflects your personality and lifestyle. Ever wanted pets that you were not allowed to have back when you were renting? Go ahead and do it! Wanted to create that loft to compensate for the high ceiling? Knock yourself out!

Owning a home can also provide a strong sense of community and belonging, as you become part of a neighborhood and have the opportunity to get involved in local events and activities. And with the pandemic now fully controlled and out of the way, you’ll fully experience the community around you and get to know more friends in your neighborhood!

If these 5 signs do not scream “2023 is an excellent year to buy a home”, then we simply don’t know what is! If you're thinking about buying a home, don't wait too long, as the market can change quickly. We’re just one click away - talk to us to get started on the path to owning your dream home.