2023 Is The BEST Time To Buy A House!
The last few years were TOUGH for buyers!
Now they finally can catch a break because 2023 is the best time to buy a house that we've seen in a while!
Watch this quick video for my 10 reasons why 2023 is the best time to buy a house!
Any questions? Reach out to me directly by email at Kyle@SoldByKyleWinn.com or by call or text at 951-852-9980.
If you’ve been thinking about buying a house, but decided to wait because buying has been so competitive or interest rates went too high or some other reason related to the “market”, 2023 will be the best time to buy a house, and I have exactly 10 reasons why.
Hey everybody, it's your friend, Kyle Winn, and if you’ve never seen any of my videos I am your real estate expert in places like Canyon Lake, Menifee, Lake Elsinore, and the rest of Riverside County.
Over the last few years the real estate market has been an absolute rollercoaster, for buyers and sellers! But today I’m going to focus on just those of you who have been thinking about buying, wanting to buy, or maybe even looked at homes over the last couple of years, but you just couldn’t make it happen or maybe you just decided to wait until the market “cools off”. Well here is your chance because I have 10 reasons why you should jump in and make your dream of buying that home a reality in 2023.
Number 1: More Inventory. Over the course of 2022 the number of active listings nearly doubled here in Riverside County. With more homes listed you are more likely to find your dream home rather than having to settle for something you are not in love with.
Number 2: Lower Home Prices. The average sale price for homes in Riverside County at the end of 2022 looked a lot like they did toward the end of 2021, so don’t be too upset that you didn’t purchase in 2022, because the average sale price peaked in April over $700,000 and ended the year in the low $600,000’s. That means a lot of people who purchased homes in 2022 have actually lost some value, but you get to rewind the clock to 2021 and purchase at those values.
Number 3: Less Competition. Consumer demand for new mortgages to purchase a home toward the last part of 2022 was down around 30% compared to 2021, and down around 50% compared to 2020. With this many less buyers, you are much more likely to get your offer accepted and not have to compete against numerous other offers.
Number 4: Don’t Pay Over Appraised Value. When homes saw multiple offers in 2020 and 2021 many of them were often well over what the home was worth at the time. When the appraisal then came in below the contract price, the buyers were stuck coming out of pocket with additional cash to make up that difference since a lender will not write a loan for more than the appraised value.
Number 5: Power to Negotiate Repairs. In 2020 and 2021 I saw many buyers cancel their purchase because the seller would not agree to making any repairs. But the seller didn’t care because if the buyer did not accept their terms there were 5, or 10, or 20 other buyers ready to accept the home as-is. At this point if there is something really wrong with the home you’re trying to buy, you’ll at least have a chance of getting a seller to complete a repair for you, or at least provide you with a credit so you can afford to get that repair done.
Number 6: Move Right In. Over the last couple of years when buyer demand was through the roof, the sellers were getting all the terms they wanted, including being able to stay in the home they were selling after close of escrow, sometimes for months, and for free! Luckily for you buyers that is no longer the norm.
Number 7: Additional Seller Concessions. From 2020 through most of 2022 the sellers got the price and terms they wanted when selling their homes, and it was very rare for the sellers to offer any concessions to the buyer. That trend has changed and now as a buyer you may be able to get the seller to pay for some or all of your closing costs, which could save you 10s of thousands of dollars.
Number 8: Interest Rates. Now I know you’re probably thinking you wished you would have bought a home when interest rates were at 2.5%, but hindsight is 20/20 and very few people were actually able to take advantage of that. By October of 2022 interest rates went to well over 7% for a 30 year fixed rate mortgage, but since then they have relaxed into the high 5’s and low 6’s as of this recording. For you first time buyers, just ask your parents what the interest rate was on their first home. Then tell me 6% is too high.
Number 9: Interest Rate Buydowns. There are programs that lenders are offering, that I have helped my clients take advantage of, that help them reduce the interest rate on their mortgage for the couple years of the loan, depending on the exact program they use. There is an upfront cost, but it could reduce the interest rate on your loan by a couple percent, and if interest rates improve you can refinance, sometimes with no lender fees, and lock in a lower interest rate. And the best part is that you may be able to get the seller to cover this cost for you!
Number 10: Builder Incentives. Many of the large new home builders out there projected much more demand for their homes than they actually saw, and as a result they have a ton of inventory that they would love to sell now! Because of this strong desire to sell all of these homes they are offering a number of incentives to buyers such as closing cost credits, free builder upgrades like flooring, free solar panels, as well as financing incentives. I know if I was looking to move I’d be taking a pretty hard look at a new home.
Well there you have it, those are my top 10 reasons why 2023 is the best time to buy a house. If you have any questions please feel free to reach out to me any time.