5 Reasons to Purchase a home in 2023 instead of waiting!

Home ownership is something that most people aspire to. It's a sign of stability, success, and achievement. And, while it's true that purchasing a home is a huge financial commitment, there are plenty of reasons why now might be the right time for you to take the plunge. Here are just a few:

1. Mortgage rates are still low. 
Since hitting an all-time low in late 2020, mortgage rates have remained relatively steady. According to Grand Forks local lenders, the average rate for a 30-year fixed mortgage is currently 6.5% at the time of writing this post. That's been an average interest rate the last few months and a far cry from the 10% or higher that was common in the 1980's. If you're thinking of purchasing a home, now is still a great time to lock in a low rate and take advantage of natural home appreciation.

2. The housing market is showing signs of recovery. 
After taking a hit during the early days of the pandemic, the housing market has begun to rebound. According to The Balance, both home prices and new home construction are on the rise again after dipping last year. So, if you've been waiting for prices to bottom out before purchasing a home, it looks like that time has come and gone. 

3. You may be eligible for first-time buyer programs. 
If you're a first-time buyer, there are plenty of programs out there designed to help you navigate the process and make it more affordable. For example, many state and local governments offer down payment assistance programs that can help with the upfront costs of purchasing a home. There are also programs that offer lower interest rates or down payments for certain groups of people, such as veterans or teachers. Doing your research now can help you take advantage of these programs before they disappear. Reach out to me if you would like to know more about these programs!

4. You could get hit with a higher tax bill in 2023. 
The recently passed American Rescue Plan includes several provisions that could affect your tax bill in 2023 if you wait to purchase a home next year. For example, the standard deduction will be increased from $12,200 to $24,400 for couples filing jointly in 2021 but will return to $12,400 in 2022-2023 unless Congress takes action to extend it further. That means that fewer people will itemize their deductions next year (including the deduction for mortgage interest), which could lead to a higher tax bill for those who do choose to itemize. 

5. You may never find the perfect house if you wait too long- Home Appreciation! 
Of course, no house is ever perfect but waiting too long to purchase one can mean having to settle for something less than ideal. Houses don't stay on the market forever and natural home appreciation may price you out of your dream home. If you wait too long, you may find yourself losing out on your dream home because someone else beat you to it! 

Purchasing a home is always going to be a big financial decision but there are plenty of reasons why now might be the right time for you to take the leap into homeownership . With mortgage rates remaining relatively low and the housing market showing signs of recovery, this could be an opportune moment to buy property. So what are you waiting for? Start your search today!