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:
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.
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.
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!