Local Market Update and Loan Qualifications: A 2023 Perspective

Hello everyone, I'm Maureen Mahood, broker of SellYourHomeCharlotte.com. Today, we're going to discuss the current state of the housing market and delve into the topic of loan qualifications.

The housing market in 2023 is showing signs of stabilization. After a period of rapid growth and increasing prices, we're seeing a shift towards normalization. According to Forbes, housing market activity remains weak overall, thanks to high mortgage rates, elevated home prices, and constrained housing inventory. However, Zillow predicts that housing affordability will improve slightly, indicating a potential stabilization in the market.

In the Charlotte market, the number of new listings has declined, suggesting a potential shortage of available properties entering the market. This could impact buyer choices and pricing dynamics. Despite these challenges, it's still a great time to buy. The market is expected to normalize, and we're hoping to see stabilization in the Real Estate market soon.

Now, let's talk about loan qualifications. In 2023, homebuyers will have more conventional mortgage borrowing power, with conforming loan limits increasing from $647,200 to $726,200 for a single-family home in most parts of the country. This is according to LendingTree. More homebuyers may have a shot at conventional loans with new changes to how lenders calculate qualifying credit scores.

For conventional loans, any borrower with solid credit, stable income, and some money for a down payment will satisfy the qualification requirements. For FHA loans, the minimum down payment is 3.5% if you have at least a 580 credit score. It's 10% if your credit score is between 500 and 579.

Understanding the current market conditions and loan qualifications can help you make informed decisions whether you're a buyer or a seller. As always, it's a good idea to work with a knowledgeable real estate professional who can provide guidance based on current market conditions.

Thanks so much for reading, and as always, make it a great home selling and buying day. If you ever have any questions at all, feel free to reach out, and I'll be happy to help.

Sources:

Forbes

Realtor.com

Zillow

LendingTree

The Mortgage Reports

TIME