After spending this year on the sidelines, buyers should be revving up for a purchase in the new year
2022 was an unprecedented year for the real estate market. Interest rates and home values both changed course at the fastest pace on record, causing many potential buyers to hit the pause button on purchasing a home.
As we approach the end of the year, much of that market volatility is now hopefully behind us. Home values have leveled off over the last 60 days after dropping ~12% since spring time, and 30-yr fixed interest rates have slipped back below 6% on growing reports of moderating inflation.
Presently, buyers remain hesitant. In November, fewer than 1,200 homes sold in the greater Sacramento area; the lowest monthly tally since 2007. Its likely that buyers won’t fully reengage till after the holiday season, but I think potential buyers should be “revving” their engines NOW in preparation for a 2023 home purchase.
I anticipate a very active start to the new year as home values and interest rates continue to normalize. Its imperative that if you are considering an upcoming home sale or purchase that you get your ducks in a row now. Here are 5 things I can help you with NOW to best prepare for an upcoming home purchase:
#1 – Get Acclimated to Market Stats and Trends
Knowing your numbers will help you to confidently negotiate with a seller. Not all neighborhoods are following the general market trends, so work with a professional to know what’s going on in your areas of interest.
#2 – Get Pre-Approved
Knowing what you can afford & understanding your financing options will keep your home search focused & realistic.
#3 – Get Your Financial House In Order
Identify errors on your credit report & oddities on your bank statements that may need attention to make the underwriting & escrow processes easy and predictable.
#4 – Get Your Actual House In Order
Do you need to sell your old home to buy a new home? Sale-contingent offers are more common-place in this current market. Its important to tackle necessary fix-it projects now so you can quickly list your home for sale when you find your next home to buy. Don’t know which projects to focus on? We can help! Even if you are a first-time buyer, knowing your lease terms & getting non-essentials boxed up ahead of time will help you plan your home purchase accordingly and make the process less stressful.
#5 – Get Real With Your Needs & Wants
Its inevitable that a home purchase will require some form of compromise (with your partner, your budget, or both!). Have a written list of what is most important to you & your family in your next home. Having a clear vision & set of priorities will help you be decisive when the right home comes along.
2023 will be one of the strongest “buyer’s” markets of the last decade. Buyers will have the advantage over sellers when negotiating price and other terms. As a broker with over 20 years of experience, I have seen that the best deals go to the clients who are prepared and calculating when buying a home. Don’t let your emotions and impulses drive the process; follow my 5 starting tips now and call on me and my team to help navigate your next home purchase.