2020 in Real Estate was a Banner Year. Low mortgage rates of under 3% lead to more buyers which lead to bidding wars which caused an increase in the purchase price of homes. But will that continue in to the new year? Let’s find out right now
If you are planning on buying or selling I have a video for you so please check out those playlists on my Youtube channel (see link below) to find something that meets your particular needs. Now let’s get started
In 2020, home prices increased by 6.7% across the nation and in Idaho, Arizona and Maine particularly home prices increased by 11-12%. In 2021 home prices are predicted to continue to increase but at a much slower rate, starting at 2% and eventually by only .2% by September. That means that the market is shifting and the buyers will have an easier time later this year.
In 2020, the low inventory was partially due to the foreclosure moratoria which lead to people staying put. However in 2021, that moratoria is expiring which means that more homes will be available and at affordable prices. People who have lost their jobs will have to sell their homes or the banks will force the issue and make them leave. Foreclosed properties are an option so if you have time to wait for the banks to do the paperwork, you might want to explore that route.
Mortgage rates will remain low, in the high 2 or low 3% range. That number is AMAZINGLY low compared to the last decade! Ask your parents what their mortgage rate was. Go ahead. I’ll wait…
New construction of single family homes is likely to increase by 17%. Builders had a tough time during the pandemic hiring workers and with the limited number of tradespeople that could be in a house at the same time, the houses to longer to build. That will change as the pandemic restrictions are slowly lifted.
2021 looks like another great year for sellers and buyers. If you have any further questions about real estate in YOUR area, feel free to contact me directly.
About the Author:
Dee Webster Realty Group has been helping families for over a decade and uses the latest in technology to assist your search. We are dedicated to our clients regardless of their time frame or price range. Did you know that you can search for only homes with solar panels and other “green” aspects? Need a first floor Master or a jacuzzi tub? We can find all of that and more!
Are you a buyer looking in purchase a home in Providence County Rhode Island or in Bristol County Massachusetts? Get your free digital Buyer’s Guide here: Buyer Guide. Are you a seller looking to sell your home in Providence County, RI or in Bristol County, MA? Get your free digital Seller’s Guide here: Seller Guide. Are you interested in learning more about the buying or selling process? Click here: Dee Webster Realty Group Video Series