• Mortgage rates have hit an all-time low, making it an excellent time for potential homebuyers to purchase.
• There is an increased demand for larger homes with more space and amenities.
• Inventory shortages in certain areas have been caused by people waiting to sell until after the pandemic.
• Remote work has increased demand for suburban real estate with larger lots and plenty of space for offices or home gyms.
The COVID-19 pandemic has changed every aspect of life, from how people work to how they shop and socialize. Unfortunately, it’s also hugely impacted the housing market for buyers and sellers. Here are some of the significant changes in the market since the start of the pandemic, and explore what potential homebuyers can expect in 2021 and beyond.
Mortgage Rates at All-Time Lows
One of the most significant changes from the pandemic is that mortgage rates are now at an all-time low. This means potential homebuyers waiting for prices to drop now have even more incentive to purchase.
According to studies, mortgage rates hit an all-time low in 2020, with 30-year fixed mortgages decreasing the years after. And while they may not stay this low forever, rates will likely remain affordable throughout the coming years.
Demand for More Space
Another trend that has emerged since the beginning of the pandemic is a surge in demand for larger homes with more space for families who are spending more time indoors. People are looking for homes that provide ample space for activities like working from home or homeschooling children, which means there is a growing demand for homes with multiple bedrooms and bathrooms and outdoor spaces like gardens and yards.
As demand increases, so too does competition among buyers—which can lead to inventory shortages in certain areas. This is because many people have decided to wait until after the pandemic before putting their houses up for sale, resulting in fewer available properties on the market than usual. So for potential buyers eyeing up certain areas or neighborhoods, it’s essential to be ready to pounce when you find an ideal property—because it might not be available long!
Many people have been working remotely since mid-March 2020, resulting in an increased demand for larger homes with workspace accommodations. The trend towards remote work could lead to an increase in demand for suburban real estate with larger lots and plenty of space for offices or home gyms. In addition, people who want easy access to amenities like restaurants and shopping are looking toward urban areas since those locations offer more convenience than rural areas or suburbs.
Taking Advantage of the Market
The past year has brought about numerous changes in the housing market due to COVID-19. However, there are still opportunities if you know where to look. Here are ways to take advantage of the housing market during the post-pandemic world.
Know Your Budget and Stick To It
Before you even start looking for homes, take the time to understand your financial situation and determine what you can afford. An accurate budget will help focus your search and prevent you from falling into debt or buying more homes than you can handle. Additionally, ensure you understand all the costs associated with purchasing a home, such as closing costs and property taxes. Once you know your financial footprint, finding houses that fit your price range will be easier.
Look For Package Deals
Moreover, it’s good to look for packages. An affordable house and lot package can be a great way to get the most for your money, as you’ll get both land and a place in one purchase. It can also be helpful to search for houses that have been on the market for longer, as you may get a good deal if the seller is desperate.
Shop Around For Mortgage Rates
The mortgage market is highly competitive, so now is the perfect time to shop for rates and loan terms that work best for your budget. Make sure you compare rates from multiple lenders to get the best deal possible. In addition, be aware that some lenders may require higher down payments or stricter qualifications than others, so make sure to read over all the fine print before signing any loan agreement.
Find an Experienced Real Estate Agent
An excellent real estate agent can help guide you through the home-buying process and give invaluable advice about finding great deals in your area, especially after the pandemic. Look for an agent who knows their local market well and has experience helping buyers like yourself find their dream homes at reasonable prices.
The housing market is constantly changing, and the pandemic has only accelerated those changes. With these tips in mind, you can be better prepared to take advantage of the market and find your perfect home.