Are Home Prices Going to Drop in 2023?

If you’re like many people who want to buy a home in Boston this year, you’re wondering whether prices are going to drop. After months of increases, many buyers found themselves priced out of the market – but is it going to happen for you in 2023? This guide explores what many experts are saying.

Are Home Prices Going to Drop in 2023?

Experts agree that home prices will drop in 2023 – but maybe not by much.

“I expect housing prices fall 10% to 15%, and the housing prices are accelerating on the downside,” Jeremy Seigel, Wharton professor of finance, told CNBC.

He isn’t the only one who believes that prices will drop.

“Prices are moderating. Mortgage rates came down. And there are more homes for sale,” said Realtor.com Chief Economist Danielle Hale. “It’s a continuation of what we’ve been seeing. Even though prices are coming down in some places, mortgage payments are still higher because mortgage rates have moved up so much over the last year.”

Another expert, Mark Zandi, chief economist at Moody’s Analytics, said, “buckle in. Assuming rates remain near their current 6.5% and the economy skirts recession, then national house prices will fall almost 10% peak-to-trough,” he said in an October tweet. “Most of those declines will happen sooner rather than later. And house prices will fall 20% if there is a typical recession.”

So how will dropping home prices affect you, and could it take the prospect of buying a home into the realm of possiblity?

The good news is that falling prices could make it easier to buy a home in 2023. With prices dropping, you may find more homes that fit your budget and be more likely to qualify for a loan.

The bottom line is that while experts predict that home prices will drop in 2023, they may not drop to pre-pandemic levels. It’s still important to do your research, save up for a down payment, and plan ahead before making any big decisions.

What Do Lenders Look At When Considering a Loan Application?

It’s important to understand what lenders look for when considering a loan application.

Lenders will most likely consider your credit score, debt-to-income ratio and income when determining if you are eligible for a home loan. You should also be ready to provide documentation that proves your income, such as tax documents and pay stubs.

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Finally, if you have any financial concerns or questions, it’s best to speak with a lender before applying for a loan. This way, you’ll be able to get the answers you need and make sure that you apply for the right type (and amount).

It’s also important to keep in mind that lenders will also consider other factors, such as the type of property you’re interested in buying and your down payment amount.

How to Clean Up Your Credit Before You Apply for a Mortgage

If you’re looking to buy a home in 2023, it’s important to understand how your credit score can affect your ability to qualify for a mortgage. A good credit score can help you get the best rates and terms, but if you have bad credit, it could be more difficult to get approved for a loan.

Fortunately, there are several steps you can take to improve your credit score before you apply for a mortgage.

First, review your credit report and dispute any errors or inaccuracies. You may also want to work on reducing existing debt by making extra payments and avoiding taking out additional loans or credit cards. Finally, be sure to make all of your bill payments on time and in full each month. If you play your cards right, you can improve your credit score and increase your chances of qualifying for a home loan in 2023.

Are You Buying or Selling a Home in Boston?

If you’re searching for a luxury home for sale in Boston, or if you’re selling your home, we can help. Call 617-967-5271 or get in touch with us online so we can discuss your needs. In the meantime, please feel free to browse our listings in the following communities:

Are Home Prices Going to Drop in 2023?