New Year, New House? 🏡

by 31 Dec, 2020

New year, New house?

The Real-estate industry was one of the few industries to strongly hold out against the pandemic. With indefinite quarantine many new home buyers find greater incentive to make the move and purchase a home.

This surge in demand mixed with the fact that supply was limited, sent real-estate prices sky high. But this wasn’t all driving up the housing market, in fact, just this week Mortgage rates dropped to their lowest point for the 16th time in 2020, further highlighting the advantage of entering the housing market. And according to Freddie Mac, a government agency that guarantees millions of mortgages, last year’s Mortgage rate was around 3.74% with this year being only 2.66%. This trimming of mortgage payments has helped many families save money monthly. But this was 2020, and with the new year coming things may be looking to change. With so many homes already sold, unsold houses sit at an all-time low.

This could spell an interesting recipe for 2021, as Economics 101 teaches you, high demand and low supply drives up the price of a good. Even with these high prices, buyers may still be willing to pay up as Jason Gellos, a real estate agent at Community Choice Realty explains: When purchasing a home “Some homebuyers are even waiving to have a home inspection”. With such strong demand and interest rates projected to continue to be low despite rising prices, will demand continue to keep up going into the new year? What do you think?

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

 

 

 

 

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