Securing a mortgage is a significant step in the home buying journey, and avoiding common…
A few key factors have intensified the housing market in 2021. The COVID-19 pandemic and guidelines to stay home have led to residents looking for homes that could accommodate their new work-from-home lifestyles. A decrease in sale inventory over the last year, due to fewer new constructions homes being built and fewer resale homes on the market, has made competition fierce. Low interest rates have also made the recent year a great time to buy a home and get great financing.
Summer is typically the time that most moves take place, whether it is from renter to homeowner or any other situation. As we move into fall, home sales typically slow down, with the most drastic decrease seen around the winter holidays.
Experts predict that while prices may remain high for a while still, they won’t increase as the same rapid speed as over the last year. The annual real estate cycle plays some part in this expected trend, but the fierce competition for homes in the recent past is also at a breaking point. Today’s buyers are going into the housing market arena knowing that competition is fierce and more willing to wait for the right home at the right price. The panic that led buyers into bidding wars has started to cool.
Not all areas are seeing this slower pace, however. Many suburban areas that are a commutable distance to major metropolitan areas continue to see a housing shortage that is leading to a lot of competition among buyers. Most in-demand markets that already have a limited amount of houses on the market expect to see prices continue to increase at faster rates that the overall national average.
Is it a good time to buy a house? It all depends on what you need and how much you are willing to spend. And like with most real estate, it’s all about location, location, location.