Making dollars and sense of housing in 2023

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Mortgage rates have gone through the roof and have put pressure on the housing market in the recent months in the US after home prices have hit record highs across the USA. But we were wondering what the fate of the Twin Ports is this year? Whether you are buying, selling, renting, what will the 2023 housing market look like?

“I’d say the game plan is very dependent on who you are as an individual. But overall, I think this market has made it harder for first time homebuyers especially. But if you are renting, I kind of assume that you will continue to rent through the next year. And if you are a home buyer or if you do own a home, you may either upgrade or downgrade your home and sell,” says Nate Moline, who does business development at Title Team.

The nation’s overall housing supply remains limited according to reports at Forbes, with those who have purchased homes in recent years at extremely low mortgage rates staying put. This tight inventory has kept prices from seeing deeper declines, making homes still unaffordable for many, especially first-time homebuyers. However, is it the same in the Twin Ports?

“The housing crisis isn’t going to change whether it’s we need apartments or single family houses or duplexes, we need all of the above. Building a house, building an apartment complex, building all that. Those all take six months, a year, two years to really get planned and then get zoned for and then actually build that. Nothing is going to change in the next year as far as housing supply goes, unfortunately. So we need a lot more housing stock and that’s not a short term fix that we can just make,” continues Moline.

So what are some things we can do if we are in need of housing? Here is a list of tips from Kevin Kalligher, a real estate executive in Duluth.

*Talk with the lender: communication is truly key.

*Get a pre-approval letter before going out and looking at a home.

*Know your budget, how much can you afford, and how much can you spend per month.

*Get a sense for what neighborhoods are like, and the area.

*Take your time, deciding on where you will live is a huge step not only financially but mentally and emotionally.