What do you need to know for 2021? Some Real Estate Trends for this year

 

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.