As we reflect on the past year, we are witnessing the lasting effects of the pandemic and how it drastically influenced our lives. As we spend an increasing amount of time in our houses, we are now evaluating what we truly need at home as we move forward. Experts are predicting that as we move into 2021, the real estate market will continue reaching new heights. Let’s look more closely into why people desire a change and are very interested in making a move this year!
Record-low mortgage rates are enticing buyers and are therefore bolstering demand in the housing market. The average interest rates for a 30-year fixed mortgage are continuing to decrease with rates falling as low as 2.65%. These interest rates will help any buyer that has found their dream home and will make it that much more affordable. Acting now will prove to pay off for buyers, since we don’t know how much interest rates will increase in the future. Interest rates are a strong influencer on buyer demand and will extremely help the purchasing power of homebuyers.
After the challenges of the pandemic this past year, we have seen an influx of working remotely. Businesses are resulting in having their employees work from home more often and we are sure to see more of this trend as we progress into 2021. Individuals in the workforce are discovering they don’t have to work as closely to their offices as before and are now open to endless opportunities of where they can choose to live. Working remotely is allowing buyers to relocate and change what people are looking for in their new residence.
With more time being spent at home, people are now searching for home with greater outdoor areas. With an increase of 31% of people working out at home, they are indeed interested in a home with more room for activities. According to State of Home Spending report by HomeAdvisor, “of the households surveyed, almost half reported spending 27% more on outdoor living over the past year.”
Homeowners are also trending more towards avoiding renovations or problems with electricity and plumbing, in favor of just buying a brand new home. The opportunity of convenience and saving money by avoiding renovations is strong enough to entice buyers to make a move. With such high buyer demand in the real estate market, sellers have the option to save money by not renovating and prioritize buying.