Due to the ongoing COVID-19 pandemic, the housing market continues to fluctuate across the country. Despite last year’s layoffs, the number of homes purchased notably increased. However, the housing market is projected to benefit more buyers than sellers for the remainder of 2021. The current factors will continue to influence housing market trends this year:
Housing Inventory: In the first half of 2021, new home listings reached an all-time low. New home construction was being fueled by low mortgage rates, limited inventory of existing homes, increased buyer interest in suburban areas, and work-from-home continuation. The rising cost of lumber and scarcity of labor pushed back new construction across the country. However, as more materials become available, housing inventory is projected to increase and create a flexible market for buyers, and a more competitive one for sellers.
“The current housing market is the most competitive since the Great Recession.” — Frank Martell, CEO of CoreLogic
Lender Capacity: Low mortgage interest rates have increased the number of new buyers, but this unfortunately leads to a backup with lenders. Buyers love a good bargain, as well as low-interest rates. Purchase demands, new mortgage rates, and refinancing requests are making lenders extremely busy. In the first half of 2021, buyers were making blind offers in order to secure a home and cashing in retirement accounts. For the remainder of the year, buyers are taking more caution when it comes to their home options, rather than continue to make rash decisions.
Should You Buy or Sell a Home This Year?
In 2021 alone, home prices increased $70,000 compared to 2020 prices. However, home prices may fluctuate as more sellers list their homes on the market and buyers take their time deciding on a home. Considering these factors, you may be wondering if it is the right time to buy or sell a house. The following conditions will help you decide if 2021 is the right time to buy or sell property:
“Down payments, closing costs, and cash reserves will all increase as home prices go up.” — Dr. Frank Nothaft, Chief Economist of CoreLogic
No matter if you decide to buy or sell a home this year, having a trusted real estate professional on your side will make all the difference. At HomeHunt, our licensed professionals know exactly how to navigate the housing market and will help get you into a new home or sell your property in line with current market trends. Don’t stress, let us help you every step of the way. Contact us today to get started!