Buying a new house and saying goodbye to rent, moving, and landlords has to be one of the most joyous moments in anyone’s life. But, as pleasant as this occasion might be, you shouldn’t approach buying a new home lightly. After years of turmoil, the present-day real estate market is still quite volatile and unpredictable. Take into account that buying a property also puts a lot of money on the table and you will see why you should approach this issue with a lot of caution. It makes sense to put yourself in the best position by working with an estate agent who is highly experienced and can talk you through the process from start to finish, like Reed Prirain. Look for an estate agent that has a lot of properties, great reviews, and plenty of time to talk. Getting this first step right can make the rest of the process much easier.
Let us take a look then at a couple of things to expect when buying a home in 2023.
The market is incredibly competitive
The last couple of years took quite a heavy toll on the entire business world. The construction industry was one of the casualties of this negative trend as well. Be that as it may, the fact remains that the current market is marked by a large number of buyers focused on a very limited choice of properties. Add to the equation the up-and-coming investors and you will see the current property market is more than competitive. So, if you want to get the best deal, you should probably widen the search geographically.
Home prices will most likely increase
Yes, according to relevant sources, the house prices will be approximately 16% higher than the previous year and will keep growing in the following period. This is, by all means, something you should take into very strong consideration if you want to find yourself a home in any foreseeable period. Still, the rising prices shouldn’t present an insurmountable obstacle since down payments can always be addressed with short-term loans. Putting some money aside will turn you into an even more competitive buyer.
The governments are in the case
So, the current property market outlook is not that bright but things are not that grim, either. For instance, governments around the world are doing their best to mitigate this situation by offering various grants, incentives, and funds aimed at making first-time home purchases as simple as they get. If you decide to go down this route you should probably ask for professional help for getting the first home buyers grant approved, but it is always good to know you have this neat option on the table.
The houses will not appreciate quickly
This development is a direct result of the gradual increase in mortgage prices. What does that mean for you as a first-time home buyer, though? Well, since the profits for reselling the properties won’t see any considerable bumps, the investors may seem hesitant to pour down money into the areas and the properties that are not seen as top sellers. Therefore, you should be able to find some very good picks if you decide to narrow down the list of amenities or consider buying increasingly popular rural properties.
Pay close attention to your credit score
Buying a home in today’s property market will almost certainly entail some sort of loan. Well, you can do a lot to further your cause by making sure you have a good credit score that will make these loans possible. The sooner you start building up your rating the better. So, start paying off your existing debts, keep the credit utilization score firmly below 30%, pay down revolving account balances, and limit how often you apply for new accounts. All these small things can drastically turn the tides to your advantage.
Be prepared to move fast
Last but not least, we would like to remind you that even though the current market circumstances are not that favorable, the opportunities for getting a really good deal may arise any second. When they do, you need to be able to close in as quickly as possible. Do your best then to start putting some money aside, research the available instant loan options, keep your commitment to the local infrastructure, services, and amenities to the lowest possible extent, and be ready to use any opportunity in a matter of seconds.
We hope this short breakdown gave you a general idea about the current state of the real estate market and the factors you need to take into consideration before buying your first house. Moving into your new home is one of the most treasured moments you will ever experience in your life. All these things mean you need to be extra careful when making this giant step. The things we covered above should definitely push you in the right direction.