When COVID-19 struck in 2020, nobody knew what would become of the world, as we knew it. More than a year since then, we are still stuck in a pandemic.
However, people have moved on with masks over their faces and more confidence with vaccines jabbed in. Real estate investments that had slowed down totally in 2020 are slowly picking up.
The damage from COVID has been done and therefore the current trends in the real estate industry are very different from those that dominated a couple of years back. You could be a buyer, seller or a silent observer but understanding these real estate trends could help you.
Home buyers Spokane and elsewhere believe that the end of 2020 already showed signs that the market was gradually shifting towards the seller’s side.
Buyers still have Limited choices
- Even in 2021, real estate trends have not sided over to the buyers’ end. During the first half of this year, a 30% downslide in inventory dominated the real estate story. The demand for buying was manifold from 2020 but the houses on an open market were few and limited.
- However, despite the limited picking, buyers purchased property quicker than ever in early 2021. Buyers bought homes at least 20 days quicker than their counterparts from 2020.
Being Flexible works Magic
- One trend that real estate agents have revealed is that more and more buyers are getting flexible with their home choices. They are sometimes scaling down requirements and desires to accommodate purchases from the scant inventory on the market. Practically though, this is a wise way to go about it.
- Home upgrades can easily be initiated later on too. However, when you simply want to purchase a nice home, you need to make a fair choice and close the deal.
Pre-Approvals on Rise
- Financiers reveal that eligible homebuyers are settling for preapprovals before engaging in property searches. Buyers in 2021 are more prepared financially and are avoiding going over the limit. Perhaps the pandemic has taught what being penny wise means, finally!
The Sellers’ Ordeal
- While the buyer’s bit seems covered, let us peek into what the sellers’ side looks like. With heightened demand for property purchase, sellers have multiple offers—more than what they received across 2020.
- Therefore, as a seller you can pick and choose with ease. There is an immense possibility that you get a much better price than you actually expected. The median range for buyer earnest money or offers are currently more than the figures in 2020.
The Pricing Point
- The pricing point is the hero of the hour. The prices for houses saw 20 percent growth year-on-year. The average price for property on a national scale fluctuated between $300,000 and $400,000. Sellers have nothing to worry about.
- Then, for buyers this brings in the need to plan finances from a pragmatic point of view. All contingencies and add-on costing must see clear accounting too. As far as the choice of mortgage is involved, buyers will stand in good stead with 15-year loans on fixed rate.
- Talk to a financial planner for better guidance if you are confused at any step of planning this. Since mortgage rates are at a record low in 2021, the fixed rate idea is only logical.
Hiring a competitive real estate agent will help you sail through these trends with ease. Sometimes it gets tough to do everything—from calculations to house hunting—all at once. That is when a real estate agent can be a boon to you.
Looking for more clarity in your life?
Sign up to receive practical tips to start journaling to bring more clarity into your life.