Like many other important life decisions, many factors come into play that make going forward the right thing to do. Buying a house, let alone building, is one such decision. When deciding, you should consider both the housing market and your personal situation. Is 2023 a good time to buy a house, in particular? Concerning the housing market, yes!
Why 2023 Is a Good Time to Buy a House
The mortgage interest rate rose dramatically last year and appears to be stabilizing at around 6-7%. At the same time, mortgage prices are slightly declining year over year in some markets. The average national mortgage was $375,700 in March 2023, which is 0.9% lower than last year, as per the National Association of Realtors.
It is best to talk with a realtor or custom home building company like Shore-Line Construction to learn more about what a competitive mortgage is in your area.
More Demand Than Supply
The housing market overall has a higher number of people wanting to buy than people wanting to sell. This high demand could make it harder to get a lower deal for a home or land lot. It also shortens the average time a listing stays on the market. Properties can go surprisingly fast. That doesn’t mean you should rush your decision, though. If you plan to build in Maryland, Shore-Line Construction can find you the best lot for you.
Today, you can still find ways to save on your mortgage through programs, mortgage types, etc. It is possible to minimize your interest rate through a program like HomeReady, Home Possible, or Fannie Mae Homepath. A construction-to-permanent mortgage bundles the costs of building and mortgaging into a better deal, and low-to-no-down payment mortgages make getting started easier.
Is It a Good Time for You to Buy a House?
Financial readiness is necessary to move house smartly. What is your debt-to-income ratio? This ratio will determine how much house you can afford and how willing lenders will lend. Typically, it is best to aim for a DTI of 36% or lower.
How likely are you to get laid off? Are you at any risk of financial instability? The safest time to buy a house in this regard would naturally be if you have a steady income.
If a financial loss occurs, your mortgage or quality of life doesn’t have to suffer badly if you have savings. Even a small but steadily growing savings account or investment could give you padding.
Does it make sense to move out? Perhaps you are downsizing, upsizing, just married, or moving out of your parent’s home. If the situation is right, it’s time to start looking.
BUILD YOUR WATERFRONT DREAM HOME WITH SHORE-LINE CONSTRUCTION!
At Shore-Line Construction, we know that your home is a reflection of you. That’s why we strive to make each home we build as beautiful as the family who will live there. We work with each of our clients to design a home that fits their needs. The end result is a durable, energy-efficient custom home that the family will enjoy for generations to come. Shore-Line Construction has been serving our customers for over 25 years, and we look forward to the opportunity to help you!
If you’re interested in learning more about what Shore-Line Construction can do for you, check out our website or give us a call at 410-574-6623. Keep up with all of the latest news by following our blog and social media pages on Facebook, YouTube, Pinterest, and Houzz!