There is a large number of real estate market experts forecasting that the real estate market will continue to see positive growth through 2021. The largest driver of the real estate market right now is the impact the pandemic has made on lifestyles with more people spending a majority of their time at home.
These prolonged periods of time at home have more people looking for a home that better suits their current life needs. Here are 4 things causing potential home buyers to reconsider their current living situation and motivating them to purchase a new home in 2021.
Record- Low Mortgage Interest Rates
The average mortgage interest rate hit a new record low about 16 times last year on a traditional 30-year fixed-rate mortgage. Freddie Mac reports the current average at about 2.65%. Many people are wondering just how low rates will go and how long rates will remain low.
Len Keifer, the deputy chief economist at Freddie Mac, has advised that those searching for homes and have found one they love should go ahead and make a purchase now instead of waiting for rates to drop. He states that rates are good now and there may not be a home you love available in the future due to low inventory.
A greater sense of urgency is driving more people to put in offers this year.
Working from Home
There is a much larger number of Americans working from their computer at home right now. It has become the new normal routine for some companies. This has caused some buyers to realize they don’t need to live so close to the office anymore. They are open to purchasing homes further away from busy areas in hopes to afford a larger property closer to their dream home. Some buyers are finding the ability to purchase the home they always dreamed of.
Some remote workers simply want a home with the ability to close themselves in a quiet room to concentrate and be productive while other family members are around.
More Outdoor Space
Since the ability to use public outdoor spaces became limited during the pandemic, homebuyers are searching for homes that allow them to have their own private piece of outdoor space to get out in the fresh air. This or a property closer to wide-open outdoor spaces make it very easy to get outside with little to no restriction, like the ability to take a walk or hike with plenty of distancing.
HomeAdvisor’s State of Home Spending Report found that almost half of households surveyed said they spent 27% more on outdoor living in the past year. This trend is expected to become larger in 2021.
Not Wanting to Renovate
The latest in buying motivation studies has found that many buyers would rather purchase a new home with the features and updating they desire than go through stressful renovations on their current home. The National Association of Realtors stated in their 2020 Profile of Home Buyers and Sellers Report that 44% of home buyers purchased a home to avoid upgrades to plumbing and electricity.
Homebuyer wants and needs are changing with the current culture. Because of this, it is expected there will be a record number of Americans purchasing new homes this year.
More for Home Sellers
- How COVID is changing the face of real estate
- How to Buy and Sell During the COVID-19
- How Working from Home is Changing Buyer’s Needs
- 8 Tips to Selling Your Home During the Pandemic
- Homeowners have gained nearly $10K this year
- 3 Reasons to be Optimistic About Real Estate in 2021
- 5 Things to Do Before Starting to House Hunt
- 6 Questions to Ask Your Home Inspector
- Will Parkland Homes hit a Housing Bubble?