2020 was a challenging year, with the global pandemic, businesses shut down, and quarantining. You might want to know how all this affected the real estate market. This post describes real estate trends as the economy recovers in 2021. It is interesting to note that the median home price is about $320,000. Property buyers and sellers are keen to know how the housing market will shape up amidst the current economic landscape.
Buying a house is a considerable investment. We buy houses to get profitable deals for the money we invest. Regardless of whether you want to buy or sell a home in 2020, you need to stay aware of the following trends.
The Price Of Houses Is Rising Gradually
It is necessary to know the home cost trends. According to reports, in April 2020, house costs increased by about 0.6% compared to last year. This slow growth trend is mostly because of the COVID-19 pandemic outbreak and market instability. By third week of May, home costs increased by 3% to reach approximately what they used to be before the pandemic outbreak. Hence, the chances of the home process regaining its past momentum seem positive.
Mortgage Interest Rates Are Low
Reports suggest that mortgage interest rates were higher before the pandemic outbreak. The average interest rate in May 2020, for a traditional 15-year fixed mortgage rate, got reduced to 2.69%. It was the lowest in the last seven years. According to economists, interest rates will be low until the economy bounces back. However, there is upward pressure on interest rates. Lenders have seen increased demand from homeowners for refinancing their mortgage at a reduced rate.
There Are More Millennial Homebuyers
Do you know who is buying houses the most? Millennials are making most home purchases today! Hence, if you are planning to sell your home, you can stage the property, keeping in mind the features and aspects that millennials love and look for in a real estate property.
Equity Will Not Reduce In 2020
The risk of a downturn is low for most housing markets. However, according to the 2020 Housing and Mortgage Market Review, house costs will increase for the next few years. That is a benefit for sellers. It means if you plan to sell your home before 2023, chances are you will bag a good deal. You need to check your home’s real worth to ensure that your equity is high.
Based on trends, it is correct to conclude that the real estate market will not collapse. The economic crisis and uncertainty might be prevalent for a while that will lead the price growth to slow down. People will get curious about the real estate market, wondering if there are chances for it to collapse. The exact prospects are impossible to fathom right now. But real estate experts and economists suggest that a crash in the real estate sector is most unlikely. That means buyers and sellers can leverage the trends in their favor.
We hope you found this blog post on Real Estate Trends That House Buyers And Sellers Should Know In 2020 useful. Be sure to check out our post on Top 5 Best Cities in the United States for Real Estate Investing for more great tips!
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