Did you know that the value of homes increased by more than $30,000 in 2021 alone? With the ongoing pandemic, more people are looking to buy and relocate to different locations.
This increased demand is due to the high number of employees working from home. Some homeowners are also taking advantage of the current housing trends and seek to sell or rent out their properties.
If you are among people looking to sell or buy a home, it’s crucial to understand the current trends. This way, you can determine the most appropriate location to relocate to or the right time to sell. Here, we cover various trends the real estate sector is experiencing in 2021.
1. Low Home Inventory
Due to the growing house market, most regions across the US have only a few homes available. In particular, the second quarter of 2021 experienced a 21% decrease in home listings in states like New York.
This low inventory is attributable to the movement from densely populated areas. It’s also due to the need for more space caused by family size growth.
Another issue causing the reduced availability is because some homeowners unlisted their properties in 2019 and 2020 due to the pandemic. This aspect then led to the scramble for available options despite the high asking prices.
2. Low Mortgage Interest Rates
In November 2020, mortgage rates for a 15-year loan went down to a historical level of 2.17%. While 2021 rates are slightly higher, they are significantly lower compared to other years.
If buying a home is among your goals for the next five years, it’s advisable to take advantage of this trend and get one in 2021.
This is because financial experts predict that the Federal Reserve may start using its mortgage-backed securities by 2022. On the other hand, list your home soon to take advantage of the current high demand if you’re selling.
3. High Renting Costs
As the government continues to offer tenants protection, the cost of renting is increasing. In most regions, landlords are charging more on rent compared to previous years. This measure is to cover any loss that may occur when some tenants don’t pay.
To avoid paying more money on rent, consider getting a starter home. With the low mortgage interest rates, this option is highly likely to be more affordable.
Look for listings on reputable websites such as Jordanterrellgroup.com to start the journey of buying your dream home. Besides, prioritize relocating to regions with lower crime rates and living costs to save more.
4. Suburban Homes Are Highly Marketable
More city residents are looking to move to less populated cities due to flexible jobs. The pandemic also fueled the demand for suburban homes due to the added advantage of working remotely.
Due to these aspects, properties near crowded cities like New York are now very marketable. Moreover, most buyers are willing to pay more than the asking price to counteract the high demand.
Keep Track of Housing Trends
Following various housing trends closely will allow you to understand market behavior. With such information, you can determine the best housing option for you.
Observing market trends is also an ideal way to take advantage of ongoing circumstances for individual financial gain. For updated details on real estate, browse this page now to discover other posts.