With a chaotic election year and disruptions from the pandemic, it’s understandable why those looking to buy or sell a home may feel uneasy about entering the real estate market. Thankfully, the outlook for 2021 in terms of homes seems optimistic. We have a few facts to back this up as we explore five things you should expect regarding real estate as we enter the new year!
Mortgage Rates are Still Low
The average 15 year mortgage rate dropped to 2.31% in November 2020. It’s predicted that prices will go up, but buyers are jumping at these lower rates. Refinancing may be great to do at this time as well. With the real estate market predicted to rise in the new year, it might be wise to take advantage of these historically low rates and invest in a greater turnaround for later. This applies to both buyers and sellers.
- Construction Costs Will Rise
There will be accelerated growth in home construction, especially with single family homes. When the economy further recovers, there will be more homes built and thus, more homes available to buy. Due to the suppression of industries like construction, these fields will need to buckle down and build to catch up on what was lost. Unfortunately, this means construction costs will be rising. If you’re looking to build a home rather than buy one, you could be spending more. So be careful!
- Prices are High
Due to demand, prices could still be high, which might mean slimmer pickings for some buyers. That said, it might be a good idea to get preapproved for a mortgage before placing a down payment. If you’re a first time buyer, be sure to offer top dollar but stay within budget in addition to obtaining approval early. Be smart but know you have competition as well!
- Competitive Buyer’s Market
Despite some of the higher prices, we could still be looking at a competitive buyer’s market. Rates are low, as we’ve addressed, and should be for some time in 2021. This means investing in a home may still be worthwhile, even with steep expenses. Especially with many heading for the suburbs as work shifts from in office to remote, families are set on finding more space outside of metropolitan areas.
- A Market Crash Seems Unlikely
Lucky for you, these lower rates and buyer’s markets aren’t too good to be true! Because of rates being so low this year and homes still in high demand, experts predict that another market crash is highly unlikely. There are enough buyers to support the market. Rest assured, if you’re looking to buy or sell, don’t fret! Just be sure to act fast!
Our team at Meraki Real Estate has the experience and heart to aid you in this competitive market. 2020 has been a tough year, but we’re confident things are taking a turn for the better, especially in the nature of home buying and selling. If you’re looking to buy, sell, or refinance, give us a call or send us a message through our website! We’d love to hear from you!