If you’ve been following the housing market over the last couple of years, you’ve likely heard about growing affordability challenges. But according to experts, the key factors that determine housing affordability are projected to improve this year. Selma Hepp, Executive, Deputy Chief Economist at CoreLogic, shares:
“ with slowly improving affordability and a more optimistic economic outlook than previously believed, the housing market could show resilience in 2023.”
The three measures used to establish home affordability are home prices, mortgage rates, and wages. Here’s a closer look at each one.
Mortgage rates shot up to over 7% last year, causing many buyers to put their plans on hold But things are looking different today as rates are starting to come down George Ratiu, Senior Economist at realtor com, explains:
“Let’s celebrate some good news. . . . mortgage rates are down. With inflation showing a tangible slowdown, I do expect mortgage rates to follow suit in the months ahead.”
Even a small change in rates can impact your purchasing power Nadia Evangelou, Director of Forecasting for the National Association of Realtors (NAR), gives this context:
“With a 6% rate instead of 7%, buyers pay about $2,700 less every year on their mortgage. As a result, owning a home becomes affordable to about 1.4 million more renters and 4.3 million more homeowners.”
If 7% rates paused your homebuying plans last year, this could be the opportunity you need to get back in the game
Be sure to work with a team of experts who know the latest on mortgage rates and can give you the best advice for the current market.
The second factor at play is home prices Home prices have made headlines over the past few years because they skyrocketed during the pandemic When discussing home prices in 2023, Lawrence Yun, Chief Economist at NAR, says:
“After a big boom over the past two years, there will essentially be no change nationally . . . Half of the country may experience small price gains, while the other half may see slight price declines.”
So, while prices will likely be flat this year in some markets, others could see small gains or slight declines It all depends on your local area
The final component in the affordability equation is wages. When you think about affordability, remember the full picture includes more than just mortgage rates and prices. Wages need to be factored in as well. Because wages have been rising, many buyers have renewed opportunity in the market. Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), says:
“Rates are expected to move lower for the year, and home price growth is expected to cool, both of which will help affordability challenges ”
While affordability hurdles are not completely going away this year, based on current trends and projections, 2023 should bring some sense of relief to homebuyers who have faced growing challenges
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The internet likes to tell us that there’s a plethora of things that can increase your overall sense of well-being and happiness inside of your home. And while these may or may not improve the atmosphere of your home, there’s one tip that is statistically proven to promote calm, comfort, and tranquility. That one thing is good lighting. Natural and low-temperature, “ warm ” artificial lighting, to be exact.
You can have multiple light sources in a room, but if you ’ re using the wrong kind of bulbs, the purpose is moot. Incandescent refers to the traditional filament-style bulbs everyone recognizes–also known as Edison bulbs. Incandescent bulbs come in a variety of shapes and wattages These classic bulbs cast a warm, soft glow that’s inimitable They look beautiful in fixtures with clear globes where you can see the bulb inside.
Sure, it isn’t a powerful light source in terms of wattage, but it can outperform all other options when it comes to providing ambiance For candles that will actually pump out light, group several together in a non-functioning fireplace or utilize taper candles in a trio of holders.
If you have a natural light source in a room but a lack of privacy, employ sheer drapes or roller shades. The see-through aspect of the sheers allow plenty of natural light to filter through while also providing a buffer between you and the outside world.
Hands down the best light source you can have is from the sun itself. If you have it, make the most of it with tall windows, bright paint, and minimalist window treatments Nature and sunlight have a drastic impact on overall mental health and wellbeing, so double down on the benefits with houseplants and fresh greenery.
Placing mirrors in a room can reflect natural light streaming in from windows and create the illusion of a larger space. Try leaning a full-length mirror against a living room wall, or hang a small mirror above your sofa, fireplace, or console table. Paired with clean white paint, the overall effect is light, bright, and airy.
