After a
year complicated by the pandemic, 2021 presents us with many challenges. But
how will the housing market perform in the current economic system? Here are
some of the trends we believe will be present this year:
Trend No. 1: Few possibilities for homebuyers
There
were not enough homes for sale during last year to meet buyer demand. The
shortage of inventory means you need to be vigilant when looking for a home, as
the best homes are likely to sell quickly. In November 2020, more than 7 out of 10 homes
sold had been on the market for less than a month –they sold very quickly.
If you want
to find a good home in this scarce market, we recommend to:
1. Give
up a few things you thought were a must-have for your dream home.
2.
Broaden your search. Your dream home won't necessarily be in the location you
think.
3. Get
pre-approved.
Trend No. 2: Home prices continue to rise
In
November 2020, existing home prices increased 15% compared to last year,
reaching a national average of more than $300,000. If you are going to buy a
home in Doral, in such an expensive market, you should consider how much you
are willing to spend. Make a budget of what you can afford to spend and what
you cannot.
We
recommend:
- That
your house payment does not imply more than 25% of your monthly salary.
- To save at least 10-20% down payment.
- To choose
a 15-year fixed-rate conventional mortgage.
Trend #3: Online real estate services are on the rise
Have
you heard of real estate services like Zillow? These allow you to search or
list homes for sale online.
What
you do is tell companies like Zillow or Opendoor about the house you want to
sell. They buy it from you, inject some money into it to resell it at a higher
price, take care of all the paperwork for the house, and then charge you pretty
much the same as an agent's commission for selling expenses.
Trend #4: Risky buying options are more affordable
Rent-to-own
First,
if you're itching to buy a home but can't afford it yet, some sellers like
Divvy offer a rent-to-own agreement.
The
downside to rent-to-own is that if you later decide you don't want to buy the
house or something breaks the contract, all those payments you made will have
been a waste.
Whether
you’re selling or buying, you can take advantage of the current trends by
partnering with a professional real estate agent.