After a year of uncertainty and unprecedented change, the spring 2021 housing market is looking up. If you’re considering making a big move or selling your home, there are a few key housing market trends to look for this season. This is especially true as real estate sales continue to rise in the post-pandemic world.
Not sure where to start? Keep reading for the 2021 housing market trends that both buyers and sellers should know about.
Low Supply for Home Buyers
The world was put on pause for nearly all of 2020, which means the number of homes for sale plummeted. There simply weren’t enough houses for sale at the end of the year, while the demand for home buyers stayed constant or increased in most markets. So what does this mean for homebuyers? Well, you’ll have to act fast on properties you love since it’s going to be more competitive to get exactly what you want. Therefore, you may need to consider sacrificing a few luxury elements that you originally wanted. Instead, opt for a fairly priced home in your desired location and upgrade the amenities over time.
For sellers, the low supply of homes in the market is actually a good thing. There will be less competition, making your property much easier to sell. You can expect to see an increase in interest, giving you the power to go with the best offer that fits your specific needs.
Home Prices Are Increasing
Yes, the price of homes for sale has been increasing since the end of 2020, and it doesn’t seem to be dropping any time soon. This is great for sellers, of course. Sellers will be able to bring in some extra cash and put it toward their next property investment. But don’t rush the process! If you’re able to, wait it out until you get the best possible offer on your home. Tip: to ensure you’re getting the most out of selling your home this spring, work with a licensed real estate agent who knows the market trends well.
Buyers, not to worry! While market prices increasing may mean less viable options within your budget, there is still hope for finding your dream home. When buying a home, it’s important to stay within your original budget – no matter hard that might seem! It’s also a good idea to save a 20% downpayment. This keeps you from dealing with a higher mortgage and fees in the future.
Rise of Online Real Estate Services
There’s no doubt that 2020 affected the way business was done around the world. With people staying home more than ever before, many industries had to move their businesses online. The real estate market is no exception. This spring, we’re seeing a rise in digital real estate service, such as virtual real estate agents, online listings, and even mobile closings.
Low Mortgage Interest Rates
The good news? For buyers, lower mortgage interest rates mean greater affordability on your new home. However, it’s still important to hold out on buying a home until you’re truly ready and can comfortably afford the long-term investment. Are you a seller? If so, then it’s likely your home will sell faster when interest rates are low. Be prepared for your home to be sought after sooner than later once you put it on the market this spring.
Questionable Buying Options
For those who can’t quite yet afford to buy a home but are longing to own one, there are a variety of options popping up in the real estate market. For instance, a potential home buyer can either utilize a rent-to-own program or get a loan for their down payment. Rent-to-own means that a buyer agrees to rent a home for a certain amount of time before owning it. While these options may be a short-term solution to home buying, they present risks if you’re unable to afford larger payments down the line.
Looking for more real estate advice for the coming year? Contact an agent at Knob & Key to get started today!