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Mortgage rates will remain low at about 3%
It is predicted that mortgage rates will remain low as an effort to help the global economic recovery. They may increase over 2021, but if so, it will be at a slow pace. This prediction has been backed by the Federal Reserve as they have stated they do not plan to raise interest rates. Make sure to take advantage of these HISTORICALLY low rates!
Relocation, relocation, relocation
2020 has changed everyone's perspective on location! With many people switching to working remotely, their needs have changed. Many employers have promised to continue this even after the vaccinations have been distributed. Meaning, people don't need to be near their place of work, but they DO need more space in their homes to create office space(s). Many are finding comfort in the suburbs and farther out and this trend is predicted to continue in 2021.
Home buyers will make MORE offers sight UNSEEN than seen in person! WHAT!?
COVID-19 changed many aspects of the way we do Real Estate, one being how we view homes. With the ability to create 3D home tours and virtual tours, many foresee that this will be the new way to 'visit' a home. We have a hard time believing that it will take over the more common in-person visit, but we will see! Would you purchase a home before seeing it in person!?
Millennials will be a large part of the buyers market!
It's predicted that millennials will be entering the home market this year more than any year so far. As they are getting older, many have a steady stream of income giving them the ability to financially afford a home. Also, with the ability to work remotely, they are able to move towards the suburbs and purchase in cheaper locations that still fit their lifestyles. Lastly, it is possible the Biden administration will implement student loan forgiveness, allowing for many millennials to reduce their debt dramatically.
Highest increase of new homes built since 2006
Finally! As an effort to balance supply and demand in the real estate market, it is predicted that contractors will build more homes this year than they have since 2006. With a rise in confidence in the housing market, construction for new homes is beginning to pick up. It is predicted that first-time home buyer starts will increase by 9% this year. Also, many new construction projects were delayed this year due to lack of supplies and labor, which will increase the numbers for 2021 as these projects will be completed.
Home prices will continue to appreciate
With demand continuing to increase, we are still short on inventory of homes. It is predicted that we'll see more sellers in 2021, partially from sellers that delayed this year, distressed homes, and new construction, but it still won't be enough to catch up with the demand of buyers. It's predicted to remain a sellers market, but don't lose hope buyers. With interest rates staying low, buying a home will still be affordable. 2021 will be another great year to sell, if you're interested in what your home could sell for, give us a call for a free market valuation of your home.
Bottom Line:
Looks like 2021 is predicted to be another great year for real estate! If you want to take advantage of this crazy market, please give us a call! We'd love to be your go-to agents and answer any questions you may have.
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