Home Prices On The Rise? What 2023 Has In Store For Home Buyers

The real estate market is always changing, and it can be challenging to keep up with the latest trends and predictions. For home buyers, one of the most pressing concerns is the direction of home prices. As we enter 2023, many home buyers are wondering what’s in store for home prices.

Home prices have been rising steadily in recent years, and experts predict that this trend will continue throughout 2023. According to the National Association of Realtors, the median existing-home price in the United States rose to a new high of $350,000 in January 2022, up 17.6% from a year earlier. This trend is expected to continue in 2023, with a projected increase of 8.1% in home prices.

Several factors are contributing to the rise in home prices. The pandemic has increased demand for larger living spaces and homes with outdoor space. Remote work has also made it possible for many buyers to search for homes in new areas, leading to increased competition for homes. The supply shortage of homes, along with rising construction costs, has also contributed to the increase in home prices.

While the rising home prices may seem daunting for home buyers, there are several strategies that can help navigate the market.

Get Pre-Approved for a Mortgage

Getting pre-approved for a mortgage is one of the most important steps for home buyers in a competitive market. Pre-approval shows that you’re a serious buyer, and it can give you an advantage over other buyers who haven’t been pre-approved. It also gives you a clear understanding of your budget, helping you avoid homes that are out of your price range.

Expand Your Search

With remote work becoming the norm for many, buyers are no longer limited to homes within a certain radius of their workplace. Expanding your search area can increase your options and potentially lower home prices. Be open to exploring new neighborhoods or nearby towns to find the perfect home.

Consider New Construction

While the cost of new construction has risen along with existing homes, it’s worth considering if you’re struggling to find the right home. New construction offers the advantage of customizing your home to your exact specifications, and you’ll be the first person to live in the home.

Be Prepared to Negotiate

Even in a competitive market, there’s always room for negotiation. Work with your real estate agent to determine a fair price for the home you’re interested in, and be prepared to make a compelling offer. Consider including contingencies in your offer, such as a home inspection, to protect yourself in case of unforeseen issues.

As we enter 2023, home prices are expected to continue to rise, making it a challenging market for home buyers. However, with the right strategies and preparation, it’s still possible to find the perfect home at a fair price. Contact us today to learn more about how we can help you navigate the real estate market and find your dream home.

If you’re in the market for a home, don’t let rising prices deter you. Contact us today to get started on your home buying journey and learn how we can help you find your perfect home.