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Is 2021 a Good Time to Buy a House?

Is 2021 a Good Time to Buy a House?

There’s never been a home buying market like this one. Buyers are motivated by significantly low mortgage rates. Apart from low mortgage rates, many companies allow their employees to work from home, meaning buyers have more flexibility to choose where they’ll live.

If you’ve ever considered buying a house, you’re probably asking yourself if it’s the right time to buy a house in 2021.

Here’s everything you need to know about buying a house and why it potentially is –and isn’t—a good idea:

image of house for sale in 2021

The advantages of buying a house in 2021

Let’s firstly start with the advantages.

The current market situation

At the beginning of this year, the housing market was noticeably hot. Thanks to the low mortgage rates, a plethora of buyers wanted to take advantage of this opportunity and decided to buy a house. They were so interested in buying houses that it even lead to bidding wars. This, of course, drove the prices even higher.

The good news is that at the moment, this isn’t a trend anymore. In the last few months, we’ve seen the market slowing down. Houses are staying on the market longer, and there are overall fewer bidding wars between buyers.

Low mortgage rates

As previously mentioned, the mortgage rates were close to historic lows at the start of the year. They stayed that way until the second half of February, when they started to climb. The climb, however, stopped mid-April, and since then, they remain consistent.

While the rates may continue to climb during 2021, it is very unlikely they’ll spike in the near term. Experts debate that we could see the rates rise in 2022/2023, but it’s impossible to say by how much.

image of calculator to represent the cost of buying a house in 2021

The disadvantages of buying a house in 2021

Uncertainty in the market

Some people are uncertain about the current situation as many experts discuss different topics such as the presumable inflation, higher unemployment, or the housing market being a bubble. It is all a matter of speculation, and no one truly knows what’s going to happen.

We want to emphasize that there are always many angles you can look at a specific topic, but it’s important to say that the majority of people are optimistic and look for the American economy to stabilize and become as strong as it used to be before the covid pandemic.

Be prepared to pay premium prices

The demand for housing has been on a consistent uptrend since last year. As the demand spiked, so did the house prices. The average U.S. house price has gone up by 15% compared to last year.

Conclusion

Although it’s impossible to accurately predict the upcoming economic trend since it depends on many aspects, we still believe that buying a house in 2021 can be a good choice.

We hope our article helped you to gain the necessary awareness about the topic of buying a house in 2021. If there’s anything you’d like to ask us, feel free to do so. Our team will be more than happy to answer all your questions!

    Pierce County, Washington, Housing Market Report

    Pierce County, Washington, 2021 Housing Market Report

    The time we currently live in isn’t sure the most certain time. In today’s world, it’s more important than ever to stay informed about the current situation with the economy. Not just on a global or national scale but also on a local scale. For this reason, we decided to write a brief article about the Pierce County housing market to raise the awareness it deserves.

    Without further ado, here’s everything you need to know about the Pierce County housing market:

    Pierce County Housing Market

    Pierce County Housing Market 2021

    The overall housing market of the United States has been on an uptrend since the last significant market crash in 2008. We’ve seen this trend evolve even faster in the last 12 months alone. In April 2021 were the home prices up 25.3% compared to last year. When it comes to the median price, it currently sits at $500k.

    There were 1558 homes sold in April 2021, up from 1010 last year.

    We can, without a doubt, say that Pierce County, WA, is a seller’s market, meaning there are actually more people looking to buy than there are homes available.

    On average, homes in Pierce County sell after 36 days on the market, and buyers are often willing to go into bidding wars.

    How will the trend evolve?

    We all would like to see the value of our assets rise, but, as we all know, markets cannot only go up, and eventually, corrections are inevitable. The market has been on a consistent uptrend for the last 12 years. In addition, many financial analysts warn about upcoming financial problems such as hyperinflation due to economic issues concerning the covid situation and ways of trying to stimulate the economy such as printing money. Over 40% of all dollars ever printed were printed in 2020 alone. This fact alone should suggest that something’s not quite correct.

     With that being said, we predict that the markets can keep rising for quite a while, but nobody knows if that means three months or two years. Eventually, in the long run, we will see a significant decrease in the value of many assets before the economy stabilizes again. If you ever thought of selling your home and take in your profits, this is the perfect time to do so before it’s too late.

    Conclusion

    Pierce County housing market is sizzling hot at the moment, considering the fact that there’s nothing really logical about the 25% increase in prices in a matter of 12 months. This, however, isn’t an issue of this area specifically but rather an overall U.S. housing market problem since we are starting to see overpricing of some types of properties in some regions of the United States.

    We hope our article helped to raise your awareness about this important topic. If there’s anything, you’d like to ask us, feel free to do so. Our team will be more than happy to answer all your questions.