It has been a challenging year for everyone but for prospective homebuyers, 2021 may be the best time to consider investing in real estate. The incredibly low-interest rates that have dominated much of 2020 may not continue going forward, making home buying a very attractive prospect for many at the moment. There are also other factors contributing to increased interest in home buying right now. Here are some of the reasons why now may be the time to invest in real estate.
Low Mortgage Rates
After hitting record lows in April of 2020, average American 30-year mortgage rates ended up evening out around 3.4%. Some calculations put the estimate closer to 3.62%, but these low rates haven’t been seen since a brief window of time during the housing crunch of 2012. While trepidation in home buying due to the pandemic has stalled a lot of potential activity, indicators point to increased momentum in real estate as investors recognize and take advantage of affordable mortgage opportunities in a competitive market.
It is estimated that national housing inventories in 2020 have decreased by more than 38% in comparison to the year before. Across the United States, homes are spending less and less time on the market, with major metropolitan areas seeing the most significant decline in inventory. In addition, average listed home sale prices have grown by almost 13% since November of 2019. Homes are closing much faster than before, potentially signaling a new surge in home sales across the United States going into 2021. Low inventory may necessitate homebuyers to be less picky about their investments as there a fewer options available while sellers enjoy less market competition, allowing them to consider multiple competitive offers. Many homes in 2020 have been selling in as little as 30 days, and those who are making moves in the market are doing it quickly.
Gen Z and Millennial Homebuyers are Entering the Market
Many Generation Z and Millennial Americans are beginning to enter the U.S. real estate market for the first time, creating even more growth in housing. In fact, in 2018 millennials were estimated to account for 37% of homebuyers in the United States, a number that is expected to rise going into the near future. Many prospective homeowners are considering getting ahead of this trend before demand gets too high and prices start to skyrocket.
For help finding your dream home within a budget that works for you, contact Grand Homes today to get answers to any questions you may have. Grand Homes has received several awards for providing superior customer service since we started in 1986 including the winner of the Consumers’ Choice Award for 11 consecutive years. Contact us for help finding the home you’ve always wanted.