MOVING IN 2023?

 There are still folks out there that will be moving in 2023 despite all the downturns in the economy.  Here are four groups of people who will make home purchases in 2023.

1. People impacted by life's circumstances: Life happens.  People will die, divorce or go into bankruptcy and need to dispose of real estate.  It was not something that was planned nor foreseen, but just happened. 

2. Expanding families or contract: Not like pioneer days when families lived in a one room cabin or maybe a two story cabin when children were growing like weeds and were just as plentiful.  Young up and coming families growing with children realize that their little home is bursting at the seams and they need more room.  Or, the opposite could be true, the children have all grown and gone their own way leaving the house vacant of the sounds of children at play. 

3. Job related moves: Families uproot themselves when new job opportunities open in distant locations.  The constraints of the job bring with them the unsettling of the children from their schools, activities, and friends.  Some moves may be international which open new vistas for the family.

4. People who invest in American real estate: There are still men and women who have a desire to live the American dream of property ownership besides their primary residence.  People who invest their time, talents, and finances in the real estate investment market.  

Bottom Line: The current economy, not withstanding, will not deter the folks mentioned above from purchasing real estate.  They will find, make, or create a way to make it a reality. Closings happen every day.  The market may be moving at a slower pace, but it is moving nonetheless.  The opportunities are there for those who can see around the corner.

THE HOUSING MARKET: IS IT HOT OR COLD?

 Take a moment to view the "homes for sale" ads in your local newspaper or ask a realtor to tell you the number of homes for sale in your market.  You may not like the answer you hear.  Although the buyer pool still remains strong, the number of homes for sale is still insufficient for the number of buyers.  So the question rises to the surface: Is the housing market chilling or just tepid?

Here are some important factors to look at as you ponder the current housing market in your area.

Why is there limited inventory?  The answer is not as easy as the question.  Several factors contribute to limited inventory in today's housing market.

  A. Home prices - although in many major markets prices are on the decline, sellers still opt for the highest and best price for their homes.  The market dictates the selling price of a property not the seller.

 B. Mortgage rates - the fluctuation in the 30 year fixed rate mortgage is a key factor in today's housing market.  Since it the rate is fluid and has not leveled out for a sustained period, new buyers are reluctant to "dive into troubled waters".

 C. The FED - the pressure from the Fed to contain inflation has an indirect impact on the housing market.  With each increase in the Fed rate, buyers and sellers see the value of their dollars shrink.  Buying a house joins a long line of necessities that vie for hard earn dollars and buyers must make the right decision in a tightening economy.

BOTTOM LINE: The key to remember is that although the market appears to be down to a trickle, the market is still moving.  Homes are bought and sold each day even in the midst of economic conditions such as we experience today.  People will still buy and sell as life circumstances change.

"THE HOMEBUYER'S FRIENDS"

If you are new to home buying than this blog is for you.  Today we will line up a few important people you should contact as a first time home buyer to make the experience as smooth and successful as possible.

1. The Lender: Your Lender is a key individual in the process of homebuying, especially for first-time owners. The Lender is going to be your financial advisor who will tell you how much money you will be able to spend on your new purchase.  Lenders are not all bankers. There are numerous mortgage brokers or mortgage originators who may be able to offer a lower rate than a traditional bank.

2. The Real Estate Agent:  Another key play in your efforts to purchase a home is the Real Estate Agent.  Their knowledge of the market and the community will be vital.  Their job is to help you find your dream home at a price you can afford with as little stress as possible.  Their success comes when you close the deal and take possession of your new home.

3. The Insurance Agent: Now that you have secured your new home, your insurance agent will go to work to find the best protection plan for your home that is available.  Their advice is extremely valuable as they oversee the blanket of protection that covers your home and alert you to changes in coverage during the life of your policy.

4. Your attorney: It is always wise to pass all legal documents through your attorney.  Not just for the purchase of your home, but any and all contracts for work or improvements to your property.  They are there to safeguard you and your home from any form of fraud or unscrupulous business practices. 

Bottom Line: Protecting your single most important investment is not something to take lightly.  The consequences are catastrophic should you fail to fully utilize the services of the above mentioned resources.