NerdWallet: After a tough year for home shoppers, here are some reasons to be hopeful in 2023

by | Dec 28, 2022 | Stock Market

This article is reprinted by permission from NerdWallet.  The 2020s have mistreated home buyers. 2023 could mark a turning point in which the housing market gives them a fairer shake. Here are real estate trends to watch for in the coming year.Reasons for optimism The outlook for home buyers is brighter than it has been since the beginning of the pandemic.

“There will be some things for buyers to look forward to in 2023,” Danielle Hale, chief economist for Realtor.com, wrote in her housing forecast. “There will be more homes for sale, homes will likely take longer to sell, and buyers will not face the extreme competition that was commonplace over the past few years.” Matthew Speakman, senior economist for Zillow
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noted that competition has lessened and negotiating power is flowing from sellers to buyers. “This means that in many cases, buyers don’t have to settle for the first house they can win a bid on, and inspection and finance contingencies are back on the table,” he said via email. Lisa Sturtevant, chief economist for Bright MLS, a multiple listing service in mid-Atlantic states, cautions that even if buyers have more negotiating power than they had in 2021, “it is still very much a seller’s market.” It’s vital, she says, for buyers to secure mortgage preapprovals before making offers. Buyers may find it worthwhile to seek deals on newly constructed homes because builders are likely to reduce prices or offer incentives such as rate buydowns. Here’s why: Builders faced growing numbers of cancellations in 2022 as mortgage rates rose dramatically while houses were under construction. Buyers signed purchase contracts when rates were low, but rates had risen pa …

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