What to Know About Real Estate Trends 2021

February 5 2021

The year 2020 was a challenging one. With so much happening, you might be wondering how it will impact real estate trends in 2021. The pandemic did disrupt home sales in spring 2020. Usually, it is considered the hottest real estate market in Arizona. The market made an impressive rebound quickly. The real estate experts reported that the surge in home sales toward the end of the year made up for the spring market losses. Whether you are selling or buying, here are real estate trends 2021 you need to know.

Trend 1: Slim pickings for home buyers

This is the hardest real estate trend you will hear, so brace yourself. Inventory has been incredibly low. Inventory was down 22 percent in November 2020 compared to the previous year. There weren’t enough houses for sale over the year to meet buyer demand.

Trend 2: Home prices are rising

In 2020, the current home prices grew by a whopping 15 percent compared to last year. This marks more than 100 straight months of the year over year price gains. This can put a big smile on the seller’s face. If you are going to buy a home in this market, find out how much you can afford. Try to stay within the budget no matter how much pressure you feel watching the competitors pluck homes off the market.

Trend 3: Mortgage interest rates are super low

The average mortgage interest rate has been low. The average rate for 15 years fixed-rate mortgage dropped to 2.31 percent in November. The economists think that their interest rate will continue to hover around 3% in 2021, which is still low.

Trend 4: Risky buying options are more accessible

Let’s cover some creative ways to purchase a home that is trending. Some sellers offer a rent to own agreement if you want to buy a home but can’t afford it. In this deal, you agree to rent the home for a specific amount of time before becoming the owner. The good side of rent to own is that it allows you to bypass the time it takes to save for a down payment and get into a house fast. It means you don’t have to qualify for a mortgage right away. If you feel like you can’t afford homeownership, wait until your financial ducks are in a row.