Why Experts Predict 2021 To Be The Year To Buy A Home
While the COVID-19 pandemic wreaked havoc all over, the one thing it may have positively affected was the housing market for home buyers and sellers. As stay-at-home orders become seemingly more ongoing, more and more people have begun investing in new homes to adjust to their needs as they spend more time at home.
Though first-time buyers found it difficult to get into the housing market during 2020 because of the pandemic, it has become increasingly clear that the 2021 buying market is prime for buying a home this year. Real estate experts at Berkshire Hathaway HomeServices are seeing a market like never before. Here are some of the top reasons we’re seeing homebuyers get in on the housing market in 2021:
- Low-Interest Rates. When the Federal Reserve cut its federal funds interest rates in March 2020 to accommodate the economic effects of the pandemic, mortgage rates dropped accordingly. Rates dropped to an all-time low in April 2020, with average 30-year mortgage rates hovering between 2.8%-3.1%. For many, this means a decrease in roughly 1% off their mortgage rate, saving about $100,000 over the 30 years of their loan. Interest rates are likely to stay low throughout 2021, making it more affordable than ever to buy a home.
- Saturated Market. Because more people are buying homes, that also means more homes being put on the market to sell. There are now more homes, as well as construction projects building new homes, on the market, giving you your pick of the crop and making it easier to find your dream home with all the features you dreamed of.
- Slower Price Increase. The price of houses tends to increase every year, and despite the pandemic, 2020 still saw price increases on homes. Similarly, prices are on an upward climb in 2021, however, at a much slower pace than years prior. Real estate experts are predicting a 2.4-2.6% increase in home prices, and compared to 2020’s 5.1%, the slower climb in prices may make 2021 the best year to capitalize on lower-than-usual asking prices.
- As federal moratoriums on evictions and foreclosures come to an end, we are, unfortunately, likely to see many people lose houses because of unpaid bills, leases, and mortgages. This will ultimately result in many foreclosures on homes. Though these houses won’t show up at auction until a few months after a foreclosure, once they do, the prices of homes will drop fast. Foreclosed houses will be priced competitively, bringing down the price of other aggressively priced homes. Though it’s never a good feeling to cash in on the misfortune of others, the truth is, if you’re willing to wait to buy a home, it’s better to wait for prices to reach the bottom before you consider buying a home, especially if your budget affords less than what you are looking for.
- Easier Touring Options. With stay-at-home and quarantine orders still in place, industries have implemented new online options for customers and clients to interact with, and the real estate field was no exception. More real estate agents have embraced virtual and video tours to show prospective buyers, while housing complexes and apartment buildings have created more 3D, 360-virtual tours for renters and buyers to explore potential units and houses online. This makes it infinitely easier for buyers to look at houses.
Looking to buy a house in the Sumter, South Carolina area? Let Berkshire Hathaway HomeServices guide you throughout the process. With over 60 years of experience, our real estate professionals are dedicated to helping you find the home or rental of your dreams. Visit our Facebook or contact page to submit a request, or give us a call at (803) 775-1201.