What’s next? A midyear housing market outlook
- June 14, 2023
- 3 min read
Housing market forecast for the rest of 2023
Thoughts on current interest rates
Answers to some top homebuying questions
Believe it or not, we’re nearly halfway through the year. It’s the perfect time to reflect on what the housing market has been through in 2023 so far. And if you’re considering buying a home this year, you’re probably more concerned about what’s going to happen in the months ahead.
Is now a good time to buy a house?
If you’re ready to purchase a home right now then, yes, now is a good time to buy a house. We’re seeing home prices decline, and it looks like we’re headed toward a buyer's market. Even so, homebuyers may still be skeptical of the market. It’s a completely reasonable response to the last few years.
The temptation to wait for rates and price tags to drop even further will always be there, but the reality is, people who try to time the market often miss out. Don’t wait to buy a home because of something that might happen. Remember, as rates continue to decline, you could always refinance later on if it makes sense for you.
First-time homebuyers tip: Making the leap from monthly rent payments to a mortgage can add another layer of stress while you monitor the housing market. As you consider the upfront costs, don’t lose sight of the long-term benefits of moving from the fluidity of rent to a fixed-rate mortgage , which can offer more predictable monthly payments over time.
How can homebuyers prepare?
Don’t try to do everything at once. You have a lot of details to consider, and if you move too quickly, you’re more likely to make a mistake.
Take it one step at a time, and don’t be afraid to start small. Maybe your first step is learning everything you can about the neighborhoods where you’re considering moving to — look at school districts, property values and all the things that matter most to you. Make sure it’ll be a good fit for you in the long run.
What is ahead for interest rates?
If you’ve been paying any attention to the housing market over the last few years, interest rates are probably top of mind for you. It has certainly been a rocky road.
There are indicators suggesting that interest rates have already hit their peak for the year. For the rest of 2023, I expect them to remain within the 5-7% range. That’s good news if you’re considering buying right now. You don’t have to worry about a sudden shift rocking the boat as you consider your future home. As always, proceed with your eye on the horizon, but know that for now, there are indicators that the interest rate waters have likely steadied.
Find what’s right for you
The housing market is always changing, reacting to a list of outside forces — financial, economic, social, political and more. The best you can do is keep your eyes on it and make the best choices you can at the moment. As we head into the second half of 2023, don’t be afraid to make your move into your new home.
President, Ally Home