Buying a home might not be the best idea in 2023. You’ll have to go through a few challenges to get one under contract. First, find a homeowner who wants to sell their home; you’ll need to convince them that ditching their low rate is worth the price. Then, secure funding; but with even the best home buyer loan, you’ll probably be stuck with a seven percent rate. Wouldn’t it be easier just to rent and invest the rest of your money? According to Daryl Fairweather, Ph.D., Chief Economist at Redfin, that’s precisely what you should do.
New data has shown that with home affordability at historic lows, now isn’t the best time to buy a primary residence. But where would you find the inventory even if you wanted to buy? “Locked-in” homeowners are refusing to part ways with their properties, and nobody can blame them. But, there are still a few metro areas worth buying in, and if you live in, or are moving to, one of these areas, you could be in luck.
But Daryl doesn’t just explain the buying vs. renting debate. She also talks about buyer demand and its recent drop-off, mortgage rate predictions and what we can expect rates to get down to, risky real estate markets facing natural disasters, and news for real estate agents that could change how commissions are paid and collected.
In This Episode We Cover
Renting vs. buying and which is a better bet in 2023
Affordability, buyer demand, and why renting may be the only option for many
Mortgage rate predictions and how low rates could go in the near future
Insurance headaches from California and Florida and why insurers AREN’T signing new policies
Migration patterns and where Americans are moving as home prices remain high
New real estate agent commission news that could change who pays an agent for buying or selling a property
And So Much More!
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Renting vs. Buying a House: Which Makes More Sense
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Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-125
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