Last year may go down in real estate history as the year of correction. After a pandemic-fuelled, seller-benefitting boom — with bidding wars, inventory shortages and spiralling prices all over the country — the housing market began to cool down in 2022. The impact of inflation and fast-rising interest rates dampened buyers’ interest, causing sales to slow and price appreciation to decelerate. But now, as we begin 2024, inflation is much lower, buthome prices and mortgage rates are both still high.
All this made 2023 something of a transitional year. Sellers still have an edge in many areas, thanks to a continued scarcity of houses, and no one expects a dramatic housing market crash. Still, many analysts see a shift coming toward a more balanced market, benefitting buyers.
Whatever the economic state of the real estate market, buying a house can be an exciting and emotional process. Before starting your search, be sure you understand the ins and outs of home-buying. Doing so will empower you to make the best decisions for your family — and your wallet.
Purchasing a home is a major decision that shouldn't be taken lightly. If you're not clear on exactly what you want out of homeownership, you could end up regretting your choice.
Get started: Define yo personal and financial goals. Buyers should think about things like when they intend on moving and what they want in a home - amenities, ideal location and how long it could take them to save for a down payment. These are all important to help define the goals they would like to meet.
Cover Photo by Jenny Ueberberg on Unsplash.
- Make a list of what's important to you in a home.
- Is location the top priority? Any must-have amenities?
- Analyze whether it makes sense for you financially. Would renting for another year or two improve your financial standing?
- Be sure you're prepared for the ongoing expenses of maintaining a home.