You’ve been planning how to make your dream of owning a home come true in 2023. But now you may wonder if you’ll get one within your budget. The good news is that there might not be as much competition as in 2022.    

Properties stay on the market for longer, meaning you wouldn’t have to struggle as much to get your perfect home. However, less competition is not the only thing to expect this year. There are so many real estate market changes that 2023 will drag along. That said, here’s what to expect when buying your first home in 2023: 

1. 1. Mortgage Rate Discount For First-Time Homeowners 

There’s nothing that keeps clients streaming into your store like discounts. The real estate industry is now using this concept to attract more buyers. You get an automatic mortgage discount on mortgage loans.    

The FHFA First-Time Home Buyer Mortgage Rate Discount is available to all first-time buyers who use a conventional adjustable or fixed rate to purchase a townhouse, condo, or 2–4-unit property. However, the mortgage rate discount is temporary and will only last for a short while. Therefore, you should buy your house early before the program expires.   

However good the deal sounds, don’t go through the home-buying process yourself. Hire a qualified real estate who knows the ins and outs of the market. They have a few tricks up their sleeves, and they’ll give you plenty of first time home buyer advice that’ll save you a ton of money. They know what to look for and the amount to pay. 

1. 2. Home Prices Are Reducing 

Another thing to expect when purchasing your home in 2023 is price drops. The prices of homes in the market this year are likely to drop. However, there’s no telling by what percentages the prices will drop. The debate is still on the table.   

Some experts believe there will be a slight drop, while others expect a more dramatic margin. Whichever the case, come prepared so that the prices may not drop to the past prices. Also, the costs will differ for different locations, and you should consult your realtor for good neighborhoods with fair rates. 

3. Mortgage Rates May Stabilize 

2020 wasn’t the best time for first-time buyers to purchase a home. The mortgage rates had doubled, with 30-year fixed rates rising to more than 6% by December from a rise of 3% in January.    

Thus, it’s still expected to rise in 2023 but at a much stabler rate, and you should lock in your purchase before the rates skyrocket again.    

1. 4. High Home Values 

If you play your cards right and buy that home you’ve been dreaming about as early as now, then you’re likely to get a mortgage discount and fair prices for your home. But those aren’t the only real estate highs 2023 drag along. The home values are likely to remain high.   

As the prices and mortgage rates stabilize, the value of homes defied predicts, refusing to crash. On top of other advantages, this makes 2023 an excellent year to buy your first home. Many people are looking into buying homes this year, raising the demand for homes. The supply, on the other side, keeps reducing, increasing the value of homes. 

1. 1. 5. Room For Negotiation 

Gone are the days when the sellers called all the shots. The real estate market is shifting more towards the buyer’s benefit. However, some are still favoring the seller, and you have to stand firm to get a better and this is where an experienced real estate agent comes in.   

Many sellers will throw money at you to get the properties off their hands. They’re giving off money for mortgage rate buydowns, home repairs and renovation, and closing costs. Some are even lowering their prices to make the properties more marketable. 

1. 6. Buying Your Home With A Downpayment 

Don’t be one of those people who push forward their purchase, waiting for mortgage interest rates and prices to drop. You may have to wait for a long time for this to happen. In the year 2023, you can buy your house with a small downpayment whether or not the interest rates and prices are too high or there’s a low supply.   

2023 is not the year of excuses. You can buy your dream house with a little downpayment. You don’t even need to have 20% of the downpayment. You can use downpayment assistance programs or low down payment mortgages backed up by the government.   

Conclusion 

The year 2023 is such a good time for your first one. Mortgage rates are stabilizing, prices are reducing, and you have more say than your seller. Buying your first home can be overwhelming, mainly because it requires a significant financial commitment, but get that mortgage approved and start looking for your dream home.