Real estate markets are constantly changing, and it’s important to stay abreast of the latest trends if you’re looking to buy or sell a property. Whether you’re a first-time homebuyer or a seasoned real estate investor, understanding the current market trends can help you make informed decisions. Here are some of the top real estate market trends to watch out for in 2021.
1. Low Mortgage Rates
Mortgage rates are at an all-time low, making it an ideal time for buyers to purchase a home. According to Freddie Mac, the average 30-year fixed-rate mortgage was just 2.81% in March 2021. Low mortgage rates mean buyers can often get a lower monthly payment on their mortgage and may even qualify for a larger loan.
2. Home Prices on the Rise
Home prices are continuing to rise in many areas. According to the National Association of Realtors, the median home price in the US was up 11.3% in February 2021 compared to the same time last year. Home prices have been steadily increasing for the past several years, and this trend is expected to continue as demand for housing remains high.
3. Increased Demand for Homes
With mortgage rates remaining low and home prices on the rise, demand for homes is increasing. This is especially true in areas with booming job markets, like Silicon Valley and Austin, TX. With the pandemic pushing more people to work from home, many are looking to move out of the city and into more affordable suburbs.
4. Shortage of Listings
The high demand for homes is creating a shortage of listings in many areas. This means that buyers may have fewer homes to choose from, and competition for homes can be fierce. Buyers should be prepared to move quickly when they find a home they like and may have to make a higher offer in order to secure the property.
5. Rise in Remote Working
The pandemic has changed the way many people work, with more people working remotely than ever before. This has led to an increase in demand for homes in more rural areas, as people look for more space and a slower pace of life. As a result, some of these areas are seeing an influx of buyers, which is driving up home prices.
As the real estate market continues to evolve, it’s important to stay informed of the latest trends. Understanding the current market conditions can help you make the best decisions when it comes to buying or selling a home.