5 Real Estate Trends in 2021 That You Must Know
2020 was a tough year, myself included. So much has happened here in Virginia and the United States that its going to be a tough one to explain to the next generation. So much of 2020 has also impacted the real estate industry and its trend for 2021 and the future.
The pandemic disrupted home sales in March of 2020, a historically hot month, the market not only rebounded quickly but a lack of supply caused a boom in prices. Home prices continued to surge throughout 2020 at an astounding pace.
What will we see happening in 2021? These 5 trends will show you the path for the real estate industry moving forward.
This is probably the most difficult to accept and something the housing market hasn't had a problem with in recent memory. The fact is that inventory continues to dwindle, and what does come to market is picked up quickly. This means that you'll need to be quick when you're house hunting, and the best homes - potentially your dream home will be snatched up fast! As you can see from the Redfin Data center, the days on market in Richmond, VA has plunged, and will continue to do so until inventory picks up. What you should do: - Sacrifice some of your wants - Expand your search - Get preapproved ASAP - Find out how much you can afford with a mortgage calculator Home Prices are Still Rising
That's right, when there is low inventory, there is a natural economic reaction in rising prices. From January 2019 to January of 2020 in the Richmond, Virginia housing market there was a 23% rise in prices from a median sale price of $215,000 to $265,000! What you should do: - Limit your house payment to no more than 25% of your monthly income. - Save at least 10-20% down payment. Mortgage Rates Are Still Down Thankfully rates have been the lowest they've been since Freddie Mac began reporting 30 years ago. Speculators believe rates will continue at this low price. What this means for buyers? It means that you may feel pressure to buy a home when you're not ready yet. Take your time to define your criteria, price, school zones and style. Don't throw yourself into a home for a 15 or 30 year mortgage because you didn't take time to plan ahead of time. Online Real Estate Services are Growing I can remember showing a home to a potential tenant when I began my real estate journey in March of 2020 and having to do so through a video call! Things like this will only continue as we progress as a society. - 3rd Party Buyers We Buy Houses RVA is buying homes directly from consumer, skipping realtor fees, commissions and even cleaning in some cases! These 3rd party businesses will buy your home directly and renovate it themselves. - Virtual Agents - Mobile or Online Closings "Risky" Buying and Selling Options There are some creative ways to purchase a home that are growing. - Rent to own - Hard Money Loans for Down Payments - For Sale by Owner Some consider this to be risky, because if you're not doing the work of an agent you're missing out on tens of thousands of dollars, but hey - thats what some pay the realtor! Skip this all together and contact us today to sell your home directly. If you're not selling in 2021, the market looks stable. Equity should remain stable throughout 2021 with limited supply available.
Real Estate market crash is unlikely.
Buyers are interested in all neighborhoods in Richmond, in particular.