Interested in purchasing a new home but concerned about the affordability of the mortgage payment?…
3 Take-Aways For Home Buyers from This Zillow Report
The Zillow report is based on a survey of a 107 member panel of housing market experts and economists.
- Over the next 12 months, rents are expected to grow more than headline CPI inflation, the stock market and home values. While home price appreciation is easing up in the AZ market, average rents for apartments and homes continues to increase year over year. The panelists predicted an additional 5.4% rent growth in 2023. Buying home will provide a stable monthly payment, potential longer term appreciation and equity growth. If rates decline in the next two years there will be an opportunity for home owners to possibly lower their monthly payment through a refinance.
2. More than 50% of the panelists predicted that we will see shift to a buyers’ market in 2023 or at very least a more balanced housing market. A calmer market ahead for buyers will eliminate the probability of multiple offers and be the end to escalation clauses, waiver of contingencies, and bidding wars.
3. While housing inventory levels are ticking up, the inventory of available homes for sale is still down 42% nationally compared to 2019 pre-pandemic. While inventory levels are still low- the time on market for current inventory is statistically increasing nationally. The inventory shortage will persist because new home construction is lagging and many home owners with 2.50%-3.00% mortgages are not as inclined to sell their homes and move. However, for home buyers there is less competition for homes and you will have more choice because homes are staying on the market longer.