Looking to buy or sell your home in 2021? Wondering what the current market is looking like? Well we are here to give you all the details on the latest real estate trends and predictions. Keep on reading for more information.
THE EXPLODING MARKET
The real estate market is booming. The boom of the current market started in 2020 from the pandemic, and resulted in record low interest rates and the shift to a super seller’s market. We have seen a national increase in existing home sales, new construction sales, and overall home prices. Real estate is a very localized business, so in the Central Florida area (and Florida in general), more and more people are moving here from up north and other out-of-state areas. We are going to break it down a little more to give you an in depth look on how the market has affected different aspects of real estate.
REAL ESTATE PRICES
So many factors can effect real estate prices. One of the main factors is supply and demand. When things are high in demand and low in supply, the value increases, which is what happened in the housing market. The median price for homes in the last couple months have gone up 15%. The increase started in 2020 and has increased more in 2021. Agents are working diligently to encourage homeowners to sell their homes to have more inventory on the market.
Just like price, interest rates play a big part in the housing market. This fluctuates greatly based on government related decisions, inflation, and more. At the beginning of 2021, interest rates were at a record low of 2.74% for a fixed 30 year loan. Now, they have raised, but are still considered low.
As previously mentioned, the housing inventory has shifted to a seller’s market. With everyone taking precaution and not wanting a lot of people in and out of the their homes while going through the selling process, many took their homes off the market in 2020, causing for-sale listings to hit a record low. Now, inventory is picking up and it is predicted that roughly in the next year and a half, 1 in 6 homeowners plan on selling their homes, so that is good news for future home buyers.
The 2021 real estate market so far has had its ups and downs, and still reflect the effects of COVID. Regardless if you are a buyer or seller, it is still a booming market that has plenty of options to choose from.