Why do Experts Predict 2021 will be the year for Homebuyers?
The 2020 pandemic has jolted everyone’s plans. Many citizens lost a job or had their lifestyle hampered. Many people lost dear ones, and several dreams have been marred or postponed. The real estate market is no exception.
While uncertainties abound, many of you who are considering buying homes may be thinking about whether to pause or give it a try. COVID 19 has affected many sectors, and this pandemic has forced people to question buying a home.
Amidst this gloomy scenario, there is some good news. With mortgage rates low, many builders and developers are trying to attract buyers with special discounts, waived prices, mortgage modifications, and more. Experts suggest that buying a new home is a unique opportunity.
Mortgage Rates Are At Historic Lows
Since March 2020, the Federal Reserve has reduced interest rates by 0.5 % up to 1% or 1.25% to respond to the pandemic. Next, the emergency cut-rate went down to 0.25 %, which is the lowest since the Great Recession. Though there is no direct connection between Fed rates and mortgage interest rates, but there is a link between the two, and the mortgage rates have dropped dramatically. Whether you want to buy a new property or refinance, these low rates will help you lower your monthly payment and save money on your mortgage loan over the long haul.
New Buying Opportunities
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After facing a setback in the pandemic year, and as life returns to normalcy, experts predict new home sales will rise by 21%. Furthermore, experts predict sales of existing properties will rise by 9% this year. Some predict home prices could increase by 3% in 2021.
Many see Biden’s presidency bringing several inspiring changes to the real estate market. The home buyer tax credit will help Americans make a down payment more easily, and government guarantees for mortgages come as further relief. With the new administration plans to offer housing incentives, this would encourage home buying in 2021.
In our previous Article, we discussed in detail why one should buy a property in the times of Coronavirus. Have a look, and we think your views will resonate.
Experts believe that the housing sector will continue to be a bright area in 2021. And with virtual home touring becoming common due to the pandemic, the new home buying experience will be efficient for both buyers and sellers, and will also save precious time and countless trips during the home buying process.
Need expert guidance on real estate buying? Call our experts today. Bluefin Reality has been successfully serving our clients for over a decade.