Negosentro | How Buyers Can Reap the Benefits of the 2021 Housing Market |It’s no secret, 2020 was a year nobody expected. According to most top real estate agents, one of the biggest changes to the housing industry was the surge of buyers heading to the market.
As companies shift towards permanent work-from-home environments, workers no longer need to factor in a commute when choosing their residence and are opting for cheaper accommodations outside city limits. In addition, quarantining at home has made one thing clear for homeowners: they don’t have enough space.
Understandably, this resulted in many buyers rushing to the market. If you’re feeling the same itch, keep reading to see what perks are in store for buyers as we head into the new year.
Another key factor driving buyers to the market in 2020 was also low interest rates. As we neared an economic recession, mortgage rates consistently dropped lower and lower.
By December, these rates hit a record low of 2.67% for the average 30-year fixed. While most lenders have strengthened the qualifications for receiving a loan, most buyers should have no issues as long as they have good credit and enough money saved.
These rates may increase once the vaccine is distrubed and the economy improves, but buyers are still primed to take advantage of these rates at the beginning of 2021.
Biden’s new affordable housing plan
Real estate experts note that the most basic form of a housing crisis occurs when people are not able to afford available property.
The down payment especially has always been one of the most difficult hardships to overcome before purchasing a home, and many top real estate agents believe access to affordable housing may be a challenge facing buyers in the new year.
As a result, all eyes are now on Biden’s affordable housing plan, which includes a $15,000 down payment tax credit for first-time buyers — redeemable at any time. If you’re a first-time buyer, this may be a huge incentive to enter the market.
The only downside? Low inventory
As noted, buyer demand is extremely strong. However, as of the last quarter of 2020, 84% of real estate agents noted that inventory is lower than expected.
This is due to a number of factors. Most notably, sellers were much more wary of tracking a deadly virus into their family home, so opted to put off their selling endeavours until the end of the pandemic.
Most real estate agents expect inventory to increase in the coming months slowly but surely for two reasons.
First, a widely distributed vaccine would put many homeowners at ease, calming their fears of infecting loved ones during their selling process.
Lastly, the real estate industry is now much more prepared to handle business virtually — even if we face another sure of the virus in 2021. Since many agents are trading in-person meetings for virtual ones and new digital closing tools makes the process almost entirely possible without personal contact, sellers may be encouraged to rejoin the market and buyers should see more inventory soon.