Real estate experts in Nebraska and around the country predict improving housing affordability in 2023. Now is the time to purchase a new home if you've been waiting on the sidelines - don't miss this opportunity!
According to housing market experts, the challenges of affordability in the housing market are expected to improve in 2023.
Key Factors Impacting Real Estate Prices
The key factors that determine housing affordability, including home prices, mortgage rates, and wages, are projected to work in favor of homebuyers this year.
- Mortgage Rates
- Home Prices
Although there are many contributing components that decide the affordability of a home in Nebraska, let’s delve into these three essential factors.
Last year, mortgage rates reached over 7%, causing many homebuyers to pause their plans. However, the good news is that rates are starting to decrease, with inflation showing a slowdown. This means that even a small change in rates can greatly impact your purchasing power. With a 6% rate instead of 7%, homebuyers can save about $2,700 annually on their mortgage, making homeownership more attainable to an additional 1.4 million renters and 4.3 million homeowners.
After a significant boom in home prices over the past two years, nationally, prices are expected to remain flat in 2023, with some markets experiencing small price gains or declines. The local Nebraska housing market will largely dictate what happens with home prices, so it's important to reach out to a trusted real estate professional for insight.
Wages also play a crucial role in determining affordability, with a steady rise in wages over time. This increase in wages offers many buyers renewed opportunities in the housing market.
While home affordability hurdles are not completely going away this year, the expected decrease in mortgage rates and cooling of home price growth is expected to alleviate some of the challenges faced by homebuyers in recent years. To explore your financing options, it's important to connect with a trusted lender and consider the full picture of home affordability, including wages, mortgage rates, and home prices.
If you're looking for a new home, Nebraska Realty is the state's largest independent and experienced real estate brokerage firm. Our knowledgeable agents are here to guide you through every step of your buying process and connect you with dependable lenders who offer competitive rates. With our expertise, we can help make your dream home become a reality!