What to Expect with Real Estate in 2021
What you need to know for the new year if you intend on buying or selling.
Real estate during these troubling times are questionable. Many home buyers and sellers are questioning what the future is like when they’re ready to move. From first time home buyers to homeowners, there’s no question that it’s a time of uncertainty. Here’s what you need to know if you plan on Making The Move in the new year, 2021.
Homes are Hard to Come By
If you’ve paid any attention in the past year at the real estate market, inventory is nothing short of sparse. For sellers, this is great! Sellers are getting top dollar for their property and it typically sells fast in the current market because of the low inventory. Many sellers are having their homes sell within days of getting on the market.
For buyers, this means being competitive and keeping a close eye on the market. Having an agent with great communication, connections, and knowledge is important so that you can make competitive offers and act fast. Click here
to be connected with an agent that’s right for you!
Homes are More Expensive
The median price of homes
rose 14.6% in November of 2020 compared to November of 2019. "Home sales in November took a marginal step back, but sales for all of 2020 are already on pace to surpass last year's levels," said Lawrence Yun, NAR's chief economist. "Given the COVID-19 pandemic, it's amazing that the housing sector is outperforming expectations."
Because of the scarcity in homes on the current market, buyers are bidding competitively - often going over asking price. The scarcity in listings causes the market value to increase in an area. Although the prices are higher than normal, the turnover rate is still high and on the rise.
Mortgage Rates are Low
Interest rates are at an all-time low with rates as low as 2.7% in Indiana. If you’re a buyer, this is great news in order to start home searching. If you’re a homeowner, you may want to consider refinancing! Thinking of selling? There are many buyers on the market right now for a property near you to take advantage of these low rates. Contact one of our agents
to help match you with a mortgage broker. According to realtor.com
, interest rates are predicted to go slightly up around .2% by the end of the year. You may want to consider taking advantage of these low rates before they go up!
Foreclosures are to Come
As you’ve probably seen locally, many businesses are forced to shut down due to hardships from the pandemic. It is no different for the local homeowners in the community. With regulations put in place over the past year, foreclosures have been postponed, allowing residents to stay in their homes. Although the date of postponing foreclosures is forever changing, it is predicted to end in 2021. What does this mean for buyers? Depending on the market at that time, lower-priced homes may become able to purchase, but it is never certain until the time comes.
Your Next Steps
At least for now, you can expect it to be a seller’s market. It’s a great time to be a home seller if you are ready, especially if you live in a suburban area. As for buyers, you are getting the best interest rates we’ve ever seen. It would definitely be beneficial to take advantage of that!
There is a lot of uncertainty when it comes to real estate and the market is continuously changing. The best thing you can do is contact the experts in your community to discuss your situation, the current market, and get a Comparative Market Analysis (CMA).