Because of the prolonged shortage of inventory and the fluctuation of mortgage rates, many potential buyers may have resigned themselves to a “bite the bullet” buying strategy.
What a current survey from Clever Real Estate shows us is 93% of 2023 buyers regretted the property purchase they made. This figure represents a big increase over the percentage of buyers who felt the same way in 2022, which was a 72% rate of regret.
The big difference most likely came in the monthly payment they were looking at: the 2022 home buyer of a $5000,000 house was probably paying in the neighborhood of $1,700 a month. Of course this does not include property taxes or insurance. That same purchase in 2023 most likely would be paying $2,500 a month mortgage payment plus the typical insurance premiums and property taxes. But what’s even more expensive about the 2023 home purchase is that property taxes being paid by the 2023 home buyer versus the 2022, the 2023 home buyer would be paying more because the home price would have been less in 2022.
Still, every home buyer should look at it this way; you’ve got to live somewhere, and real estate is going to continue to be in high demand.
According to the same survey, 38% of home buyers said they paid above asking price in 2023.
Still, inventory is not going to be the only factor impacting this market; affordability is going to jump to the head of the line. So, with inventory still limited, pricing is going to remain within a very narrow range unless there is some catastrophic economic event. Either way, home buyers are not going to have the selection that they had available to them in 2019. Clearly, 2020 represents a threshold in the way that we look upon home prices and the strategies necessary to purchase the right home at the right price.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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