Buying a house can be a complicated process, involving one of the most significant financial decisions a person makes. While the path to a new home can feel like embarking on an adventure into uncharted territory, finding the right path doesn’t require near-clairvoyant knowledge of the market or the ability to perfectly predict how your personal goals will pan out in the next few years (Although either of those unusual abilities would be delightful!).
Discerning whether or not now is a good time to buy a house requires careful consideration of a few factors. Let’s look at those factors to see if purchasing a new home in 2023 might be a savvy decision for you!
Here’s the Story, Inventory
The housing market has slowed since the real estate frenzy of 2021 when builders created waiting lists for new communities, and home prices rose drastically as sellers received multiple competing offers. A stable housing market is good news for buyers because it offers more available houses and makes bidding wars less likely. However, while the market may not be moving at a frantic pace, it is still moving. According to the Austin Board of Realtors, the average house sells in less than two months, so try not to wait too long if you see a home you love at a price you can afford.
Real Talk About Interest Rates
Mortgage interest rates hit all-time lows in recent years but have risen in 2023. Because so many factors affect interest rates, it’s impossible to predict if rates will continue to increase or turn downward in the coming months and years. However, the cost of houses will rise in the years to come. Home prices in the Austin area have risen 9.3% in the last five years and 7.7% over the previous ten years. Also, it’s important to note that if the rates drop and buyers flood the market again, there will be fewer homes to choose from and more competing offers on houses. Because of this, many buyers may choose to find a house they love and look to refinance when that becomes cost-effective. But, there are ways to secure a lower rate with shorter loan terms and buy-down options. Some home builders, like Ash Creek Homes, even offer incentives to buy down the interest rate for the first few years of their mortgage.
Benefits of a New Build vs. an Older Home
When choosing between buying an existing home or building one from scratch, both have benefits. Older homes are available right away for motivated buyers in need of a quick move-in, and in some cases, an older home offers charm and quirks that would be cost-prohibitive to add to a new build. However, buyers who don’t mind waiting a few months find that newly built homes are much more energy efficient, come with a warranty, require less maintenance, and offer buyers the opportunity to choose their lot and customize the finishes included so their home feels more personalized. And if you can find a boutique builder like Ash Creek Homes, your newly built home will incorporate more charm by including thoughtful, upscale design elements. Lastly, it bears noting that for buyers who need to move now and want a new home, builders often have inventory homes available, offering quick move-in dates and all the benefits of a new home.
The Benefits of Home Ownership
The perfect house could mean living closer to work, being able to walk to your favorite restaurants, or better schools for your children. The right place for you might be a cozy refuge with a view or a spacious entertainer’s dream. Whatever your needs and wants, finding a home that checks those boxes can create emotional and psychological benefits that are difficult to quantify with dollar signs. However, owning a home pays off financially, too. A house is an investment that creates long-term financial security. And it’s a giant tax write-off, too! You can write off interest, mortgage insurance, and property taxes on your federal tax return. So, is now a good time to buy a home? Realistically, if a buyer can find an appealing, affordable house, there has never been a better time.
Whether you decide to wait to embark on homeownership or are ready to set out on an adventure to find the right house for you, we here at Ash Creek Homes wish you the best of luck. And if you’d like to find out more about how we’d love to build your dream home, please let us know! For more information on next steps to buying one of our Ash Creek Homes, our Preferred Lenders would be a great place to start too.