5 Real Estate Trends For 2021
The world is still feeling the effects of the coronavirus pandemic, across the globe we are still discovering the ongoing impact on the economy, and the property markets. Whether you’re considering a real estate project this year, or you’re looking to buy a new home, it’s well worth keeping up to date with the latest real estate trends.
1 . Property prices continue to increase
Throughout 2021, the price of properties will continue to rise. According to finance expert Dave Ramsey, ‘In November 2020, existing home prices grew by a whopping 15% compared to last year—rising to a national median of well over $300,000.’ Real estate investors who are looking to sell should be pretty happy with this, but what can you do if you’re looking to buy? If you’re in the market to buy a property, Dave advises that you
‘Limit your house payment to no more than 25% of your monthly take-home pay,’ and additionally, ‘Choose a 15-year fixed-rate conventional mortgage.’
- The rise of online real estate companies
Over the next year, we’re going to be seeing a whole lot more online real estate companies. Not only do these companies allow you to find properties for sale, but some companies will purchase and sell a property on your behalf. These companies will buy your property, sell it for a higher price, (as well as handling the repairs, inspections, and viewings). Such services are gaining popularity because they save sellers a whole lot of time and hassle.
- The trendiest housing market locations
Every year, new housing markets experience increased demand. Throughout 2021, Dallas Texas will continue to be a popular housing market. Plenty of factors are contributing to increased demand in Dallas Texas, including diversity of employment across the financial, tech, and medical industries. According to National Mortgage News, Atlanta will also experience increased demand, throughout 2021.
- Lower rental prices
According to Rent Spree, ‘Housing prices are up, while rental prices are down. The housing and rental markets were impacted in unique ways in 2020. Prices continued to rise in the housing market, while demand, and therefore prices, declined in the rental market.’
Many workers lost their jobs throughout the pandemic, meaning that lots of people are now unable to pay high rental prices. The rise of working from home has driven many individuals out of expensive cities, to rent in cheaper locations. Experts predict less demand for rental properties across New York and San Francisco.
- Increased interest and inflation
Throughout 2021 we can expect to see increased interest and inflation across the real estate market. Whether you’re a first-time buyer or an investor looking to Sell your land, it’s important to conduct a detailed research about the market. Investing in property can earn you a generous income, so long as you plan your project, and adopt a clear strategy. If you’re looking to purchase a new home this year, ensure that you take your time when you’re shopping around for a mortgage.