What will the real estate market look like in 2021?
The National Association of Realtors’ chief economist forecasts that total home sales will rise an additional 10% to six million national sales and the median home price will increase 3%. If you’re buying or selling in the next 12 months, here are three things to consider and be prepared for:
1. Housing inventory is scarce. If you’re a seller, you need to have your home in the best condition possible. Plan on heavy buyer traffic and possibly multiple offers. If you’re a buyer, make sure you’re fully pre-approved with a reputable lender and be able to act quickly as soon as the perfect home comes on the market.
2. Interest rates are insanely low. Money is cheap right now, which makes your buying power go further. A few years back, if you got a 4.5% interest rate for a $300,000 mortgage, it would’ve cost you about $1,520 per month. Now, if you can secure a 2.5% interest rate, that same house payment would be just $1,185 per month. In other words, you’d be saving $335 per month compared to what buying a home would’ve cost you. These are the lowest rates we’ve ever seen, and they may not be this low again.
3. Buyer demand is fierce. If you’re a buyer, you need to be aligned with both a professional real estate agent and mortgage broker. There’s a chance you’ll have to bid against as many as five to 10 other buyers for the home you want. Often, a seasoned agent can make all the difference.
Everyone’s circumstances are different, so we encourage you to contact a local, licensed agent who’s great at what they do (like the agents on our team) before moving forward. There are things buyers and sellers can start doing immediately to guarantee future success. Whether you’re thinking about selling your home and would like to know what it could sell for this year or you’re thinking about buying a home and want to see all available inventory in the Twin Cities and surrounding markets, please visit our website.
As always, if you have any other real estate needs, don’t hesitate to call or email us. We’d love to help you.
