Have you been waiting for months to see if 2023 is the year you’ll find your dream home at an affordable price? Welcome to Spring market 2023! This is the time that usually marks a turning point for homebuyers and sellers after the lack of activity in the harsh winter months. Most people will wait until the warmer weather to put that fresh coat of paint, finish all the repairs, and start looking for buyers. So what can we expect this year?
2022 was marked by higher prices and higher mortgage rates that sidelined many hopeful buyers. This year, we’ll likely see prices remain stable. This will depend on the area, of course. Some markets may still see some volatility but you shouldn’t expect big price jumps. As to mortgage rates, they surprisingly fell this week, although remaining closer to 7 percent than most people would like. There are no guarantees, but our hope is that mortgage rates have already seen their peak this year and can head to a slight decline over the course of the year.
With the promise of some much-welcomed price stability, we’ll likely see more people start house hunting. Yes, buyer traffic will pick up in the spring and more sellers will list their properties, so be ready with your approved budget and list of top priorities.
Remember that inventory will continue to be an issue, which is why we’re not expecting prices to drop too much. Expect plenty of competition for ready-to-move, well-located homes in good school districts.
For their part, sellers will have to adjust to the fact that the market is stabilizing. It is very much still a seller’s market but gone are the days of the early pandemic era when homes would sell for three times their estimated value after receiving 20 offers.
So what can homebuyers do?
Improve your credit score (here are some tips).
Don’t underestimate the role of an agent and choose one carefully.
Figure out your home buying timeline.
Have a list of priorities (remember you’ll probably have to make some compromises).
Try to understand your local market (join our monthly buyer classes for more insight on the Portland real estate market).
Shop around and compare loan types, rates, offers, fees, and lenders.