Buying a Home in 2021
Anyone following the home market knows that we are experiencing a shortage of homes for sale. This shortage of inventory applies to both new construction and resale homes. Chances are if you are in the market to buy a home you won't be the only person making an offer. For buyer, this means they should be flexible and have additional fund to make a strong offer. It is a good idea to talk to a local real estate agent to help you understand the local market.
Many real estate experts are expecting home prices to continue to go up in 2021. According to forecast's from Fannie Mae, Freddie Mac, the National Association of REALTOR's and Mortgage Banders Association existing home prices are projected to increase 5.9% in 202, compared with a 10% jump in 2020. Home prices vary by season and are generally most expensive in June and July and less expensive in January and February due to the number of people purchasing homes according to a NerdWallet market trend. But the demand is going to be higher than in the past so homes will typically have multiple offers and sell quickly.
Economists are expecting mortgage rates to remain low in 2021. According to the latest forecast by Fannie Mae, Freddie Mac, the National Association of REALTOR's and Mortgage Bankers Association the are forecasting a 30-year fixed-rate mortgage to average 3.15% in 2021. Even though rates are currently low, it's important to shop around for the mortgage that best suits your particular situation. It is best to contact multiple lenders and compare mortgage rates and fees.
For more information about purchasing a home contact Allen Deaver of Asset Realty.