Real Estate Trends for 2021
Real estate trends are constantly in a state of flux. The market is intimately connected with many factors, and the slightest of changes in any one factor can produce the wildest of effects on the industry as a whole.
2020 was a particularly chaotic year, largely inundated by the effects of the pandemic. As a result, the spring of 2020 saw a significant drop in house and property sales. But the market soon made a strong comeback by the end of the year. The resurgence is likely to continue for real estate in 2021, especially with low mortgage rates in Edmonton and surrounding areas, which is why this is a great time for home buyers.
Here are a few real estate trends to watch out for in 2021.
Trend #1: Low Inventory, Fewer Options
The demand for housing is high, and there just aren’t enough houses to keep up with it! As a result, perfect homes in every way are extremely likely to be taken up fast. Homebuyers have very little time to waste, so if you come across a house you really like, you shouldn’t wait around before closing the deal.
In fact, it makes sense to make compromises where possible to find a home that satisfies most of your major needs. Because of the way the market is going right now, you could end up losing your backup option, too, if you hesitate before making an offer.
Trend #2: Low Mortgage Rates
Low interest rates can compel people into buying a house, even if they didn’t think they were ready for homeownership. According to economists, interest rates are likely to remain between 2.2% and 3% throughout the year, which is another reason behind the low inventory and high demand. Of course, you’ll still want to look for a house that’s within your budget to ensure you don’t face any difficulties making your mortgage payments, even with a low interest rate.
Trend #3: Real Estate Prices Are Increasing
The surest sign that the real estate market has successfully rebounded from a brief slump is the continued rise in prices. That is why it is important to make sure you stay within budget and choose an affordable mortgage. For instance, the 5-year fixed-rate mortgage offers the lowest-cost home loan in most cases. Your best bet is to stick with fixed-rate mortgages in the current inflating market.
Finishing Up
The overall real estate trends are much more encouraging for new home buyers in 2021 than the real estate downturn of the previous year. Like many other areas seeing a drop in mortgage rates, Edmonton is experiencing very affordable rates, which is why it’s good to take advantage of these uplifting trends to get the best housing deal. But remember to avoid overstretching your budget so that you can truly enjoy life in your new dream home!