This article is reprinted by permission from NerdWallet. The 2023 housing market may not be great for either buyers or sellers. But for current homeowners hoping to play both roles, it could be the right time.
When entering the housing market, current homeowners have to consider twice the (often conflicting) circumstances — they are the seller, trying to get the best price for their current home, and a buyer, trying to purchase their next house at a reasonable price point. In a “balanced” market, with roughly even amounts of buyers and sellers, that’s not an impossible feat. But when the market is heavily tilted to one group or the other, a win-win scenario is less likely. One in 10 (10%) current homeowners plan on buying a home in 2023, according to NerdWallet’s 2023 Home Buyer Report, which asked in late December who planned on buying within the “next 12 months.” This is on par with the share of owners who said they planned to buy when we asked one year earlier. But repeat home buyers in 2023 are not facing the same circumstances as buyers in 2022. “Mortgage rates rose so fast last year that they scuttled countless deals. People made successful offers and then, when they were ready to close six weeks later, they discovered that they couldn’t afford the monthly payments because of those rates,” says Holden Lewis, NerdWallet home and mortgages expert. “This year, rates are more stable. Buyers can be choosier because they are in less of a hurry to lock their rate and close on the purchase.” See: Mortgage rates dip amid economic uncertaintyMortgage rates may slow (but not stop) sellers When asked what’s preventing them from purchasing a new home, 26% of homeowners cited current mortgage rates. This apprehension isn’t without cause. Rates for 30-year fixed mortgages peaked in the fourth quarter of 2022 at just over 7%, after hovering around 3% in 2020 and 2021. It’s a marked increase, but not t …