March 17, 2023
As we enter the traditional spring homebuying season, much has changed for potential homebuyers compared to the past couple years.
While a lot of focus has been on soaring interest rates and selling prices, a key factor for homebuyers has slipped under the radar.
After record-low mortgage rates spurred the recent homebuying frenzy, home prices skyrocketed, driven by intense competition for homes. Many homebuyers at the time were simply priced out of the market.
Now, however, the market is much different and that may be a good thing for potential homebuyers who were previously shut out.
Discouraged regional homebuyers cite home prices (65%), mortgage rates (57%), and recession concerns (41%) as reasons to hold off on their home search this year, but four in 10 (42%) of those who are likely to search for or buy a new home this year believe there are available homes they want and 37% expect mortgage interest rates to decrease.
If you continued to save for a home despite previous frustrations, you may be rewarded in your home search due to stabilizing mortgage rates and diminished demand, even allowing for negotiating on your terms instead of the previous “sight unseen” bidding wars for homes that recently dominated the market.
The WSFS Mortgage study found that when asked to choose what they want from a mortgage lender, nearly half (44%) of regional residents selected lower service fees as their top priority, with transparency on all-in purchase cost (41%), homebuyer assistance programs (39%) and a quick and easy pre-approval process (37%) also ranking high.
There are several local, state and federal programs designed to help homebuyers with upfront costs, such as down payment and closing expenses. Work closely with your lender and realtor to identify programs you may be eligible for, including those offered by your lender.
Knowledge is power in homebuying, so tap into every resource you can to have a clear understanding of how much home you can afford and lean on your hand-picked team to help you find the home of your dreams this year.