2020 was a challenging year for real estate. With the pandemic slowly but surely coming to an end, here's what real estate experts are predicting for this upcoming year.
Buyers; get ready for competition
In 2020, inventory decreased by 22%, which means there weren’t enough houses available to meet demands. Last year, most homes sold in a month or less because of this. Before house hunting, you should have a list of "essentials" and “nice-to-haves” and be willing to make a few sacrifices. Your preferred neighborhood might not have homes for sale either, but you would be surprised what you can find just outside of your area. But don’t worry, the right real estate agent can work their magic to find a home that’s exactly what you need.
We recommend getting pre-approved for a mortgage beforehand to have an upper-hand against other buyers when it's time-sensitive. The good news is that mortgage rates are the lowest they have been in 30 years.
Keep in mind that last year, prices grew up to 15%. Here is a tool that can help you calculate exactly how much you can afford.
Sellers; Low inventory means low selling competition
Deciding to sell this year means your home will be one of few on the market. This means more offers, a better profit, and more time to make a decision. To truly get the best offer on your home, consider working with a real estate agent who will maximize your profits. If you believe your home isn’t in a popular neighborhood, chances are there are still many buyers who are willing to make an offer, so don’t accept the first one you get.
If you’re not buying or selling:
Even if you have no intention of moving, it's good to know that your home’s market value will likely increase in 2021. With low mortgage rates and an even lower inventory, experts believe that a housing crash is very unlikely. So if you’re staying put this year, you can look forward to next year.
For a bigger breakdown -
Money.com’s editors have developed a live article that is updated every week with the current market trends. They recommend checking this information into account weekly since the market is easily influenced by external and global factors.
