Planning to Buy a Home in 2021? 4 Things You Should Know
Owning a home is a dream come true for many individuals. It is a big undertaking but potentially rewarding. In today's market, especially with the COVID-19 pandemic, there's a lot you should know regarding purchasing a home. Not anyone can get a mortgage; the real estate market has changed significantly. However, owning a home frees you from having a landlord and allows you to increase property value over time. If you're planning to buy a home in 2021, here are a few things you should know.
Fewer options to choose from
During the pandemic, the housing inventory has grown tight compared to other years. In 2021, with the release of vaccines, the demand for homes has risen, driving the sellers to increase the prices. Coupled with the drawbacks from the year 2020, 2021 began with inflated home prices. If you insist on owning a home in 2021, you're likely to be stuck and have to make compromises. Before you go into the housing market, make a list of must-haves in your home so that you don't settle for less.
There are high costs to owning a home
In 2020, home prices went up, and they are still rising in 2021 due to the global pandemic. In 2020, real estate professionals projected that in 2021, the prices of existing homes would go up by 5.9%. According to the Mortgage Bankers Association, since 1990, this is the highest prices have been.
If you're planning to buy a home in 2021, prepare to make premium payments. Prices vary by season; homes are more expensive in July and June and cheaper in February and January. Determine the best time to make a purchase and consider other factors such as long-distance moving and making repairs.
The buyers in the market are more than the homes on sale
If you find the ideal home for you at a reasonable price and neighborhood, there's a possibility that there will be more prospective buyers. In almost every part of the country, the real estate industry in 2021 has turned into the seller's market. With a recession, buying a dream home requires flexibility and the willingness to make a few concessions. More people have realized the value of securing their future by keeping a roof over their heads; without a solid offer, it's difficult to win over a seller.
More digital tools to make your experience easier
The COVID-19 pandemic brought new norms to keep people safe, one of those being social distancing. In 2021, if you're planning to buy a home, it's necessary to beware of digital tools that can make your experience easier while keeping you safe. You can attend e-closings, virtual home tours, zoom meetings, and smaller open houses. With the rollout of vaccines, the regulations regarding social distancing are loosening depending on the city, county, or state.