With record numbers in the country working from home, going to school online, or engaging in social activity on the web, where we call home has never been so important. Maybe your house is feeling more cramped than ever with kids home all day and no office door to close, or maybe your apartment unit walls feel like they’re closing in without an outdoor space to retreat to. Whatever is motivating you to look for a new house in your region, see what the housing market predictions for 2021 can hold for you.
2020 was a year like no other. There’s nothing like at-home quarantine to make you think about finding a new house! While the past year held uncertainty and unique challenges, 2021 shines ahead, providing a light at the end of the tunnel. Although no one can know exactly what future market conditions will hold, real estate experts have compiled information to create their best housing market predictions for 2021.
The housing market in 2020 was characterized by unprecedented conditions. From virtual home views to the job crisis, the housing market broke records of many kinds, good and bad. Most notably, the market conditions were characterized by record lows in housing inventory. This means there were many looking to buy a new home but far less selling the house they had. What typically results from high demand and low supply? High prices! In the real estate market that translates to home values on the rise and equity for homeowners.
The great news for home buyers and sellers in 2021 is the prediction of some market stabilization. This gives sellers a more reliable image of how their home value will rise and how much they could sell for, giving them confidence to pull the trigger. Home values rose an average of over 8% in 2020 giving many built in equity on their home and a bright outlook for those looking to buy. In 2021, home values are expected to rise over 8-10%, giving new buyers immediate equity and sellers even more reason to capitalize on high values.
The big struggle of 2020 was inventory scarcity. In 2021, experts predict existing home sales to grow over 9% and new construction build sales to increase over 21%. These new listings are expected to saturate the home market in 2021 and will bring some much needed relief to the competition between buyers for the limited homes available.
Mortgage interest rates hit a record low in 2020. Since the interest rate began its recording in the 1970’s, this is the first time it has dropped below the 3% mark. In 2021, the mortgage interest rate is predicted to remain low, hovering around the 3% mark for home buyers.
What do all those housing market statistics and predictions mean for you as a potential home buyer?
The less you have to pay in interest, the farther your money can go. From lower monthly payments to slightly higher purchase prices, the predicted mortgage interest rates provide you with more buying power. If you look into buying now, you might be able to get a little more yard, some more space inside, or a perfect location for your new home all with the same budget.
The market value of homes heading up only benefits you if you’re a homeowner! The longer you wait, the higher home prices in your region may grow. Buying now puts you in a position to gain equity and higher return on your investment.
No home is perfect, but you can find one that suits you better than the one you’re in. Whether you’re tired of a space you’ve outgrown, you are looking for a different atmosphere, or you’re hoping to downsize to something cozier, 2021 is a great time to swap your home for something new.
If you’re a seller, that typically means you’re a buyer too. Low mortgage interest rates can benefit you on both sides of your home buying and selling process. When selling the home you’re in, low rates mean a larger pool of eligible buyers. When buying your new home, those rates help you secure lower monthly payments for the house of your dreams.
Find a home better suited for you and make increased returns on your past investment? It doesn’t get much better than that. The increasing conditions for home values across the country mean homeowners can sell the home that isn’t right for them and make more off of it, all while finding a new house that works.
Whether you’re a first time homebuyer or you’re selling your current home in search of something new, UMH Properties, Inc. has many things to offer. Those looking to ditch the confines of apartment life and begin an investment in lieu of rent payments will find many affordable options with UMH. Our reasonable prices, outdoor living spaces, and spacious homes will provide the perfect transitions into homeownership for first timers.
Those seeking more than just a home will find a sought-after neighborhood feel and a list of lifestyle amenities that come with buying in a UMH Properties, Inc. community.