With recent inflation, the cost of owning a home could increase. Despite this, inflation is causing some pressure that could benefit you if you want to buy a home this year. Economic changes have caused a cooling off with demand for homes in several markets. With rising mortgage rates, many are questioning whether it’s the right time to buy a home. Here’s why Foundation Mortgage is seeing some positive signs for today’s homebuyers in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee. Read below for a few reasons why you can make homeownership a goal in 2023.
Less Competition Makes It Faster to Find a Home
In past years, many markets saw home prices skyrocket as demand surged and supply was not adequate. This was particularly true in many unexpected areas as workers went remote during the pandemic. However, recent data shows that inventory is on the rise compared to last year. This is because less people are looking while interest rates increase. In response, some sellers may have to lower the price expectations for their home. Supply for available homes is still low, but signs show improvement from prior years.
Less Buyers to Compete with for a Home
As less people look for a home, you have less buyers to compete with. When demand surged last year, you had to move very fast if you wanted to get a home. Buying a home also meant you had to concede certain important factors in your purchase. For example, some markets were so competitive that buyers were waiving home inspection to secure their spot. This is not ideal. In addition, many had to make offers well over asking and dig deeper into savings to cover down payments. This year, you can encounter less stress while looking for a home. If you were passed over for other buyers before, now may be the time to jump back in the market.
Less Pressure to Waive Contingencies or Other Desired Features
While looking for a home with less competition, you may not be pressured to waive appraisals. In the past, many people ended up with homes far away from their desired geographic location or without their favorite features. In today’s market, you may have more room for negotiation, particularly if an inspection finds something of concern. This means you can save money on costly repairs down the line. While it’s still a challenging time, you can find a different experience in today’s market.
The professionals at Foundation Mortgage are here to help you find your ideal home in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee. Contact one of our loan officers for a consultation today!