Education and news for smart DIY landlords!
You’re probably interested in buying a house this year. Three reasons for that is probably because staying at home is the new normal, it’s cheaper than renting nowadays, or you’re reselling for profit. But you can’t just search for a home for purchase.
Remember, everyone else is looking for a place to stay as well and there are more real estate investors buying houses and holding on to them for an investment. Here are 4 of the things to expect in the 2021 real estate market so that you’ll make a sound decision of buying a home.
With home quarantine and remote working being the new normal, more people are now buying homes than ever before. And it’s not just a buyer’s market in dense populations like cities or areas close to industrial facilities - the demand for homes will also be high even in rural areas and suburbs.
If you’re going to buy a house for the first half of 2021, you need to make a lot of concessions to capture the favor of the house seller for the property of your dreams. A good tip to remember is to weigh the future risks of counter-offers the buyers present.
Another thing to put in mind is to be wary of home sellers who are rushing the home selling process. Sometimes home sellers sell homes for less so they can make fast and easy money while letting the buyer skip home inspection processes.
This can cause a lot of problems in the future for the next house owner. Never skip home inspections and all the legal processes.
Since the demand for homes will be high and the housing supply will be low, you can expect the prices for properties to increase as well. However, it won’t be as fast as it did last year when the pandemic struck.
Existing home prices this 2021 are projected to increase by 3.1% rather than the 6.7% that happened last 2020. This projection is according to an average of forecasts from Fannie Mae, Freddie Mac, the National Association of Realtors and the Mortgage Bankers Association.
Prices will also vary by season. Houses will generally be more affordable in January and February while being at the most expensive during June and July. You may have more homes to choose from during warmer months due to an increase in listings.
The only backdrop is, homes will sell more quickly so the early bird gets the fattest worm. If you want to get one of the best homes at an affordable price in the market this year, canvass properties on days that are near the end of winter and on the early days of spring.
As mentioned before, social distancing, home quarantine, and remote working are the new normal. So expect that homebuying will be done online. You’ll talk with your real estate agent if you’ll hire one and the home seller through Zoom or Skype. Even house viewing will be virtual.
It might not be disadvantageous for homebuyers in the early parts of the year especially for those with great to excellent credit scores. Mortgages have recently hit their 14th low. But remember, the rates may increase as 2021 progresses.
The bright side of it is that mortgage rates have a strong chance of staying competitively attractive as the economy recovers. If you want to avail a low mortgage rate, it’s essential that you check your credit score first and work to boost it.
Keep yourself updated on the latest real estate updates by visiting Landlord Prep every Tuesdays and Thursdays. I’ll be here to guide you in achieving real estate career success.
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