It’s no secret that the housing market has been on a rollercoaster ride in recent years, with home prices soaring and then moderating, and mortgage rates fluctuating. But one thing that has caught the attention of many homeowners and potential buyers is the issue of home equity.
Don’t Let Headlines Scare You
Recently, headlines have been filled with news of homeowners with negative equity, causing many to question whether now is still a good time to buy a home. But before you let those headlines scare you, it’s important to understand the full picture and the context behind the numbers.
Don’t let recent headlines about negative home equity scare you away from your dream of homeownership. The truth is the media is only giving you a small piece of the puzzle and not the full picture.
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It’s true that a report from Black Knight Inc. states that 8% of homes purchased in 2022 are currently “at least marginally underwater,” meaning the homeowner owes more on the loan than the house is worth. But it’s important to remember that this data is specific to homes purchased in 2022, a year that saw skyrocketing home price appreciation, and the market has since cooled off. Additionally, the media is failing to mention the key word “marginally” and the fact that owning a home is a long-term investment.
What’s Up Ahead in 2023?
So, what can you expect from the housing market in 2023? Experts agree that we may see a return to greater stability and predictability. The National Association of Realtors (NAR) forecasts that “2023 likely will become a year of long-lost normalcy returning to the market,” with mortgage rates expected to stabilize and home sales and prices moderating after recent highs. Danielle Hale, Chief Economist at realtor.com, adds that “buyers who have been waiting on the sidelines may find more opportunities to purchase a home at a price they can afford.”
Despite the challenges of the past year, now is still a good time to buy a home. Don’t let short-term equity numbers and sensationalized headlines deter you from your goal of homeownership. With market conditions shifting towards stability, it’s the perfect opportunity for you to become a homeowner. Work with a real estate agent who has extensive knowledge of the market, a proven track record of client satisfaction, and a dedication to helping you achieve your dream of homeownership. Don’t miss out on the opportunity to invest in your future and the long-term benefits of homeownership.