Alison Gerver Real Estate

Taking a look at the rest of the 2023 housing market - Spark Notes style!

Home Prices and Rent Growth

• Home price and rent growth will likely level off for the remainder of 2023 and into 2024.
• Rent growth may overtake home price appreciation, with the rental market remaining strong and rental prices expected to increase.
• The number of renters is also expected to rise as the cost of homeownership increases, particularly in urban areas.

Mortgage Rates and Inventory

• Mortgage rates will remain high (above 6%), contributing to the overall high cost of home ownership.
• Unwilling to give up their sub-4% rates, sellers will likely stay put, causing the housing inventory shortages to persist.
• Joint real estate purchases will become more common as a way to afford larger properties and qualify for mortgages.

Buyer Trends

• Following a recent decline, the percentage of first-time homebuyers entering the market may rise in early 2024.
• Affordable markets in the Midwest, South, and Sunbelt will continue to attract younger buyers who are able to relocate due to remote work.
• Further, many are moving to be closer to family and loved ones, with 17% of recent buyers citing this as their primary motivation.

I'd love for you to join the conversation — comment with your thoughts and questions about real estate in 2023!

Today we’re getting to the bottom of building equity in a home.
—Trust me, this is one of the most important topics for your financial future.

Beyond the obvious benefits of owning your own home, it’s an investment. When done correctly, it offers significant financial advantages. Below are the top 3 ways building equity can help you create a strong foundation of future wealth.

1. The option to tap into the value of your home
Your property appreciates over time, which means so does your equity. When deciding to sell, refinance or take out a home equity loan, your equity gives you a valuable asset at your disposal. With the option to borrow against your home, you could renovate, pay for your children’s education, start a business, etc.

2. A pathway to future financial stability
While you can never get back what you pay in rent, mortgage payments are an investment in your equity. With each mortgage payment, your debt decreases, and ownership increases.

3. Potential tax benefits
You may be able to deduct the interest you pay on your mortgage and your property taxes from your taxable income. Consult a tax professional on the specific benefits available to you.

If you are currently renting and are ready to start investing in your future, I'd love to chat! Send me a message of when your lease is up, and I'll send you over my digital home buyer guide to help you get started.