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Real Estate Trends 2021: What You Need to Know

jennifersmith42924 by jennifersmith42924
January 7, 2021
in Real Estate
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Real Estate Trends 2021: What You Need to Know
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The mighty 2020 was a difficult year and finally, it is ending. With so much happening around the world and particularly in the country, you may be wondering how this will affect real estate trends in 2021. Although the pandemic has upset home sales in the spring of 2020, which is generally considered to be the hottest season for real estate, the market quickly rebounded impressively. Real estate experts reported that the increase in home sales and people trying to buy luxurious property in Duluth GA near the end of 2020 made up for losses in the spring market. Now the question is will we see more similar results in 2021? How will the housing market move in our current economic climate? Whether you sell, buy, or sit still, these are the 2021 real estate trends you need to know before you make any decisions.

Real Estate Trends During COVID-19

While assessing real estate market trends before and during COVID-19, it is important to look at what has changed since the start of the year. The federal government’s closing of unnecessary businesses has suspended most real estate transactions. Many social distancing rules make real estate transactions even more difficult. 

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Decline In New Homes

Not to mention, there is a lot of economic uncertainty that prevents people from buying homes. Based on these changes in the economy and people’s lifestyles, there is a decline in the number of new homes, homes on the market, and interest from buyers. There are also signs that the housing market will continue to slow down, despite the huge reduction in rates to zero percent.

If you are considering buying a home in this expensive market, you absolutely must determine how much you can afford it. Commit to sticking to that amount of budget, regardless of the pressure you feel watching your competition take good houses off the market.

Home sales trends 

2021 home sales are expected to increase seven percent above 2020 levels, following a more normal seasonal pattern, building momentum in the spring and keeping pace in the second half. While home sales have lost momentum in the final months of 2020, the shallower-than-normal seasonal slowdown creates a higher base of activity before 2021, which is sustained for roughly the first half of the year. As coronavirus vaccines become widely available to the public and economic growth reflects the resumption of more normal patterns of consumer spending, home sales will increase further in the second half of the year.

Online Real Estate Services Are Trending 

You’ve no doubt heard for residential real estate realtor that allow you to search or list homes for sale online with a single click. But did you know that online services now offer to buy and sell your home for you? Outside buyers, here’s how it works, you tell companies like Open-door which house you want to sell. They buy it from you, add money into it to resell it for a higher price, take care of all the home treatment like inspections, repairs, and house calls, and then charge you the same. But these services charge more than an agent commission for the sales fees, in addition, some of these companies include additional service fees. They promise less trouble, but that may mean less turnover for you than working with a top-mark agent who could sell your home for more money. But still, it is convenient and you do business while sitting on the couch.

Final Say- keep These Things In Mind When Buying A Home In 2021

Limit your house payment to no more than Twenty-five percent of your monthly take-home pay. This payment includes principal, interest, property taxes, homeowner’s insurance, and if your down payment is lower than twenty percent, you can go for private mortgage insurance. Plus, don’t forget to consider the homeowner’s association fees when preparing your budget. Save at least a ten to twenty percent down payment. A twenty percent or more down payment helps you avoid private mortgage insurance, an extra fee added to your mortgage to protect your lender, not you in case you don’t make payments. Anything less than 10% will get you drown in extra interest and fees.

Tags: real estate agentReal Estate Trends 2021

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