After an extraordinary year in the housing market recovery, real estate continues to show remarkable strength as we progress into 2021. The market conditions are in favor of homebuyers this holiday season. Let’s dive into the advantages of purchasing a home this winter and the benefits that this transition will bring along with it!
Mortgage rates are continuing to hit record breaking all time lows which in turn has set up homebuyers for success in years to come. Lower mortgage rates essentially mean that homes will cost less over the lifetime of the loan. With such low mortgage rates, it is less expensive to borrow money now than it has been previously in past years. Now is the time to capitalize on low mortgage rates to achieve the opportunity of lower housing payments in the long run.
The housing market has bolstered home equity with 42.1% of homes being mortgage free and the average equity of homeowners being around $17,000 nationwide. Increased equity is granting homeowners the opportunity to accumulate more savings and therefore allowing them to have more options when choosing a new home this season. Homeowners with substantially more equity are now in a better position when it comes to selling their home and the cash liquidity that results. The equity gained from the sale of a home will then be utilized as a down payment towards the house they are purchasing. The forced savings from equity is the extra push to help consumers afford a new home this year.
Home prices are forecasted to continue appreciating as we move into 2021. In combination with low mortgage rates, home values rising will give purchasers the strength and reassurance that now is the right time to make a move in the market.
There is also an extremely low housing inventory which is forcing the home prices to skyrocket even further. Sellers are making big gains in this market with high competition amongst strong demand with buyers. Making a move to sell now will strengthen your home’s reach to a greater audience and will elicit far more interest as it is featured in the buyer pool. Selling during a housing shortage will enhance your listing and allow your home shine to potential buyers.
It is time to make a move! Low mortgage rates, boosted equity accumulation, rising home prices, and a low housing inventory are all great benefits to ensure your home buying success in the new year. Connect with one of our trusted and experienced Advisors today to learn more!