By October of 2020, more than 700,000 homes sold to new buyers. Demand was high and mortgage interest rates hit near-historic lows, making it easier for new buyers to get into the homes of their dreams.
Though last year’s housing market was great, the 2021 housing market will likely be a bit different.
You need to be ready and know what to expect from the market if you plan on buying or selling your home. Here are a few key things to know about the upcoming year’s housing market trends so you can make the best choices for your goals.
1. The 2021 Housing Market Will Stay Competitive
In 2020, homes didn’t stay on the market long. In fact, the average house sold in just 56 days. With more people looking to buy homes and escape overpriced rentals, this trend will likely continue.
That means the market will be competitive. This is great news for sellers who can get higher asking prices for their homes more easily. However, it’s bad news for prospective buyers.
You’ll need to make your offers competitive. This might mean waiving home inspection contingencies or being willing to offer more than the asking price on a house you love.
2. You’ll Want to Work With a Real Estate Agent
Whether you’re buying or selling a house in a competitive housing market, you’ll need to work with a real estate agent if you want to see good results. Real estate agents know the market and can help you navigate changing conditions with ease.
If you’re worried about the commissions you’ll pay to work with them, don’t be. Real estate agents can save you time when looking for a house or trying to find prospective buyers. They’ll handle the negotiations on your behalf so you can focus on taking care of your regular responsibilities.
3. Mortgage Qualification Requirements Will Change
It’s likely that mortgage interest rates will continue to stay low during 2021. This means that borrowers will pay less over the life of the loan, but it does present a challenge to lenders.
Lenders still want to make money on the loans they provide. The last thing they want to do is risk lending money to a borrower who may default on the loan in the future.
Expect mortgage qualification requirements to continue becoming more strict over the course of 2021 and beyond. Be ready to shop around for mortgages and compare rates in detail to ensure that you get the best deal.
Be Ready for This Year’s Housing Market
Housing market trends change from year to year. Now that you know what to expect from the 2021 housing market, you’re ready to start looking for homes in earnest.
Just make sure to take your time. Only buy properties that you can reasonably afford and be willing to compromise with sellers to make your offers stand out from others they receive.
For more insight into the changing real estate market, check out our latest posts today.