Whether you’re a city dweller who’s looking to move into the suburbs or you want to sell your cramped space for a larger home, it’s smart to keep your eye on the ever-changing real estate market.
Here are the real estate trends to look out for in 2021.
Millennials Will Be the Top Home Buyers
Millennials, or people born between 1981 and 1996, have been dominating the housing market for the past couple of years, and this year isn’t any different. With the youngest Millennials turning 25 years old in 2021, chances are, many will be moving out of their parents’ home and into their own private space.
On the other hand, the eldest Millennials will be turning age 40. This may mean that they’re expanding their families, getting higher-paying jobs and moving into larger homes. With many still working from home, chances are, people will be looking for an at-home office space during their real estate search.
Mortgage Interest Rates Will Be at a Record Low
Interest rates were already low in 2020, and in 2021, they’re still going to be low at around 3 percent. A low rate means home buyers will be more likely to be able to afford their dream home.
Don’t worry, home sellers. A low mortgage interest rate is also good news for you! With home buyers more inclined to purchase your home, it’ll be off the market in a snap.
People Are Moving to the Suburbs
In 2020, the pandemic caused many companies to close their offices and send their employees home to work remotely. As a result, people who lived into the city opted to move into temporary homes in the suburbs, in order to save money on rent.
As the effects of the pandemic continue in 2021, people are still looking to move out of the city and into the suburbs. The suburbs offer cheaper prices and more room to walk around, which appeal to people who are working from home.
Home Prices Will Continue to Rise
Home prices soared in 2020, and in 2021, they’re only going higher. Compared to 2019, the number of homes for sale was down nearly 20 percent in October 2020, which has caused the average list price to steadily increase.
For home buyers, high prices mean you should save at least 10 to 20 percent of your down payment and choose a 15-year fixed-rate mortgage. By following these steps, you’ll make the home buying process easier for you and your wallet.
For home sellers, the rise in prices can be great news. With people looking to move out of the city and into the suburbs, they’re desperate to find a home that’s perfect for them, even if that means spending a few extra dollars. For you, that means more money in your pocket!
Want to buy or sell your home in 2021? Let CENTURY 21 Semiao & Associates help! Our real estate experts will guide you in the right direction to finding your dream home. For more home buying and selling tips, check out our blog!
