Homes with Holly

Will 2023 Be The Year To Buy A Home?

If you are looking to buy a home in Rhode Island this year, you may be wondering what the market will look like. While it is impossible to know exactly what will happen, I may be able to share some of what you should expect in 2023.

It seems like 2022 was the year of the seller’s market. The demand for homes was steady in 2022 even as the mortgage rates rose. As we go into 2023 we see that the demand is not as strong, but still high. Will things get better in 2023 for homebuyers? Let’s take a look at the pros and cons of buying a home in 2023. 

Pros of buying a home in 2023

Owning a home means building equity in a property, which could increase your net worth and allow for more borrowing power in the future. Mortgage rates dipped this month, but are still higher than January 2022. It may be the time to start considering pre-approval for a home. 

The real estate inventory is expected to rise this year which means more properties and less competition. We aren’t expected to see as many heated bidding wars this year as we did in 2022, however, always make sure you have a trusted real estate agent to help you negotiate the best price for you. Speaking of negotiations, buyers are expected to have more room for negotiations. Buyers may have the upperhand when it comes to new construction homes as well. 

Cons of buying a home in 2023

While there are advantages of being a homebuyer in 2023, there are still a few challenges you may encounter. The mortgage rates dropped, yet they are still high and may make it difficult for homebuyers on tight budgets. While mortgage rates will drop, home prices will rise, as expected. I recommend saving as much as possible for a down payment to avoid a costly PMI. 

The housing market is not easily predicted, anything could change over the course of the year. If you are looking to buy a home in Rhode Island this year, let’s talk. I want to find you a home that is perfect for the next season in your life, and also help you get the best price in this market. Do not go house hunting without a trusted real estate agent on your side.