Due to the Covid, we saw the nation shut down temporarily, thus causing a lot of commotion in our economy. The Feds decided to cut rates bringing current mortgage rates a historical low giving a ton of opportunity for home buyers in the market. In contrast, the fear of the virus put a lot of sellers in a position to oppose selling which was a huge driving factor in the continuous drop in home supply. Fast-forward to today, we have seen all across the nation a surge rise in the median sales price. The demand for buying is much greater then the supply of homes for sale at the moment.
The National Association of Realtors are showing forecast predictions with a some optimism in our market. Though no one has a crystal ball that will tell us what will happened. Their are indicators that have great influence in the market. Here’s are a few things you want to keep an eye on in your local Market:
Since reopening we have seen Covid Numbers rise in which the talk about having another shutdown could be possible in 2021. After the first shutdown, there could be some risk of many more people to lose their income. Moreover there still is an inventory shortage which makes finding the right home more difficult to find and harder to compete with other offers. The biggest advantage for buyers today is locking in a low interest rate. The feds dropped the rates to historic lows earlier in 2020. Many forecast for 2021 expects that it won’t go any lower and not sure how much longer they’ll stay this low.
Challenges for 2021:
-Job Security / Secured Income
-Competition with other offers
-Finding a home with low Inventory
When it comes to buying a house in 2021 there’s many factors you want to look at to compare all home buying options. Here are my few tips to consider buying a home in 2021. Make sure income is secured! If there’s any concerned that there’s a chance that may impact negatively against the amount of income. It may be wise to consider a worst case scenario and plan accordingly. The next thing is to take a look at finances and calculate what makes sense for a comfortable payment for a Home. Once you get a good budget for a home now it’s time to compare different living cost in desired areas. Now that the budget is made and the cost is doable its time to talk to an expert and get professional guidance to help you along the way. Buying in 2021 all above still apply however a few things you might want to consider: Having an emergency savings fund and staying up to date on local market conditions
Buyers Checklist 2021
-Check your Job security (income) and how it was impacted by covid
-Check finances and see how much of a mortgage would fit.
-Compare Cost of living
-Consider having an emergency Fund
-Talk to a local Real Estate Expert