2020 was surely a challenging year. With the pandemic affecting the world, America saw one of its worst economic phases. Many sectors, especially real estate, saw a downfall. But 2021 changed the situation by introducing new real estate trends which saw an upward graph of the market.
While the pandemic did interrupt the sales during spring – which is considered to be the hot-selling season for real estate – the market made a remarkably quick comeback. According to the National Association of Realtors, the upward trend of sales by the end of 2020 made up for the downfall during the spring.
But the question here is – will this market situation continue in 2021 as well? Will the industry see a low sale phase again or will the demand for buying and selling of houses continue to rise? Well, all these concerns are addressed in this blog.
So if you’re looking to buy a new house or sell yours, start taking notes to stay updated with the real estate trends in 2021.
Real Estate Trend 1: Dearth For Home Buyers
When dealing in real estate, this term could be quite contradictory. Throughout this year, inventory has been incredibly low. According to the National Association of Realtors, the inventory was 30% down in the earlier months of 2021 as compared to the previous year. While the demand for buying houses was increasing, there were no sellers interested in selling their houses.
This situation is phrased as Slim Picking in real estate jargon. Let us walk you through what this means for both buyers and sellers.
- Slim Pickings for Buyers:
In this case, you need to be on your toes all the time to buy your dream house since the best houses are likely to be grabbed away fast. If you want to find a good home in this competitive market, here are some tips:
- Adjust and sacrifice: If you are unable to find your dream home, find something similar to it. Do not stay adamant about going for “must-haves.” Instead, go for a less expensive option that has less competition.
- Expand your search: Not only geographically, but try other options too – such as buying through multiple listing websites. If your area is too competitively priced, you may want to reconsider expanding your radius to get the best of the deals
2. Slim Pickings for Sellers:
Low inventory means you’re in a low-competitive market. Which means you’ll have offers pouring into your inbox. Choose the best one, considering the financial aspects and the background of new homeowners.
Real Estate Trend 2: Mortgage Interest Rates Are Still Running Low
Off late, the average mortgage interest rate has been affordable and low. In January 2021, the average rate for 15-year-fixed–rate mortgages fell to 2.2% – the lowest in nearly 30 years.
- What do lower mortgage rates for buyers mean?
Low interest rates do not always mean high affordability power. Today, interest rates are lower than ever and that means buyers can have easy access to the funds required. Having said that, do not go for properties that are out of your budget just because the interest rates are lower.
2. What do lower mortgage rates for sellers mean?
Till the time interest rates stay low, higher are the chances for the buyers to make a quick offer to buy your house. The day these interest rates start to climb the graph, buyers would think twice to invest in real estate. So make the most of it during this “low rate of interest” phase and say yes to the best offer.
Real Estate Trend 3: Online Real Estate Services Are Booming
With things being digitized, now buying or selling homes are simplified at your fingertips. Real estate Multiple Listing Sites like Houzeo, Zillow, Redfin, etc allow you to list your homes and browse properties that fall within your desired budget and geography.
The best part about some MLS is they charge a one-time flat fee. No hidden costs, no extra overheads. Imagine more potential buyers or more property options under one roof! Real estate websites have the power to make or break your deal by saving you thousands of dollars.
Real estate tech tools are soon going to redefine customer convenience. Whether you’re a buyer or a seller, staying updated with the industry that’s constantly evolving is essential. Understand the littlest of the details and go to the crux of your decision before making a final call.