The pandemic left a significant impact on real estate and after all the trouble seen in 2020, people are really concerned about properties today. It’s intriguing how the market, after a substantial crash, stood up again with twice the strength it had before.
In fact, the new rebound was enough to make up for the losses encountered during spring 2020. The real estate market gained a significant raise causing the market prices to reach real heights.
But what will 2021 be like? Will the real estate market undergo another crash? How will it neutralize the problems caused by Covid-19? To discover the answers, explore the 2021 real estate trends below.
Trend no.1: Scantiness of Houses in Market
This trend might be difficult to take for most people, especially for home buyers. Since February 2020, the inventory has dropped significantly.
It has been reported that in contrast to the prior year, the inventory had fallen by a huge 22% in November, 2020
This situation took the real estate by a blow. The market ran out of houses to put on sale and the purchase demand of buyers was on a rise.
Yes, the sellers used this status quo to their advantage but the buyers weren’t very satisfied with this upheaval.
Effect of Low Inventory on Sellers: This news meant a jackpot for sellers. Since there are no houses to buy in the market, your house, being one of the few houses in the market, is set to enjoy great importance. This gives you the chance to only settle for the best and decide on a price that suits your profile.
Effect of Low Inventory on Buyers: For buyers, low inventory doesn’t ring good bells. Houses were bought like clothes on sale. Reportedly, a study from November 2020 shows that more than 70% of homes were bought within a couple of weeks.
We have listed some tricks you can use to purchase a house in these times:
Consider All Locations:
Don’t just stick to one place you’ve thought of. Every place has its advantages. Consult a real estate agent that can guide you through the best of locations and best of properties.
Being a pre-approved buyer has its benefits. In this time of chaos, already having signed up for a mortgage will offer you preference over other buyers and that’s what we need.
Focus on Needs:
When there are ‘literally’ no homes to buy in the market, forget your wants and concentrate on your needs. Look for a house in a decent locality and in a reasonable amount and make changes to the property afterward.
Trend no. 2: Prices are on Fire
It is reported that prices of houses in the market gained a rise by a massive 15% in contrast to the year before. This survey was held in November 2020. This caused the average market price to stand at more than $300k.
Such an achievement would in other circumstances mean a constant rise in prices for almost nine years. This news is sure to give a seller goosebumps. And as for buyers, sit tight for we’ve got you.
When purchasing property or getting it on lease, the one thing you have to make sure is to not cross your budget amount. Restrain yourself to finding the best deal within that amount.
For this purpose, you will need the assistance of a professional real estate agent who knows where to find the best deals. That’s one important step towards getting a good house.
One could be more proud of being a seller than at this time. There’s profit and money everywhere. But you might want to save that money to buy an even better home next time.
Also, do to be desperate enough to go on signing the contract on the very first offer. If you’re in a hurry, take your time to get the best of offers and then sail the ship.
Trend no. 3: Petty Mortgage Lending Rates
The mortgage interest rate right now is the lowest it has been in the past thirty years. Interest rate here refers to the small amount charged by a lender of the entire payment as a percentage.
However, it has recently been predicted that the interest rate might go up a percent or two. But even in that case, the price would still be perfectly fine.
Now for a buyer, this real estate market trend is definitely a thing to rejoice over. Nevertheless, only commit to buying a house when you can afford it. Don’t let the low-interest rate force you to purchase property when you’re not ready.
As for sellers, this means that buyers will be more concerned about purchasing the property. However, in case of an increase in interest rates, your house might need to stay in the market a bit longer than on usual days.
Trend no. 4: Thriving Online Marketplaces
You’d probably think that online marketplaces are old-school for displaying properties for sale and properties for lease. But you might be a little wrong there. Online real estate markets like Frementa, etc., make your work easy for you.
Its easy-to-use platform is yet another thing to talk about. Frementa makes dealings easy and secure by guarantee customer trust and authenticity of the deal and confirmation of payment. It offers hassle-free visits, keeping client’s contentment of utmost importance. You can schedule a visit without making a single call.
Its always-ready team of professionals or experts are sure to make your home finding endeavor 10x faster. You can either request a virtual agent or a professional to help you side by side. The best part is that Frementa doesn’t require commissions so you don’t have to go on making extra payments all along.
That brings us to the end of the blog. Whether you’re buying or selling a property or just keeping a lookout, this is definitely one of the best times to make investments that will stay with you lifelong. And following these real estate trends, you’ll be going places. Happy Investing!