Are you looking for a new home? If so, you'll be happy to learn that it could be a great time to buy. That's because many people have had to sell their homes during the pandemic, and this has created an excellent buyer's market. This is especially true for first-time homebuyers. As the pandemic is coming to an end, a larger number of buyers will enter the market for the first time.
This will drive up home prices, and it could make real estate an exceptional investment these days. Not only that, but there are plenty of homes available in all regions of the country.
This can allow you to pick out the right property for yourself and your entire family, and you'll be able to find a living situation that makes it easier to work from home! Here's what you need to know about becoming a first time homeowner or buying a new home during 2021.
Each Price Range Is Different
The market for high value homes has not changed a lot since before the pandemic. While there have been some changes, they have not been even close to as dramatic as the changes that have impacted lower price ranges. The market for mid-range homes has become an extremely strong buyer's market.
Furthermore, lower cost homes in urban areas have become significantly more affordable, which has been due to an increase in sales and foreclosures. Therefore, low cost and mid-range homes are likely to be the best real estate investments throughout 2021.
Sales Are Likely to Happen Quickly
If you need to sell your home, the sale is likely to happen more quickly than it would under normal circumstances. This is due to the fact that there has been an increase in homebuyers, which is because of the affordable housing prices in today's market.
Interest Rates Are Quite Low
While interest rates will rise as the economy recovers, they are still quite low. Therefore, you're likely to pay considerably less than you would during a stronger economy. However, it's important to act quickly. The economy is expected to bounce back fast, which will result in rapidly increasing interest rates.
So, you're probably wondering what interest rates are nowadays, and the answer to that question depends on the specific lender that you choose. It also depends on your credit score and history. However, you can usually expect to pay around 3% for interest on a home loan.
The average rate is currently approximately 2.5% for a 15-year mortgage and 3.2% for a 30-year mortgage. Ordinarily, interest rates are around 5-6% or more. Therefore, it's easy to see how much you can save by locking on to today's low mortgage rates. If you have a good credit score, you might be able to save even more.
Prices Could Go Up Quickly
Due to the economic turmoil caused by the pandemic, many people lost the resources that they needed to own a home. As a result, a large number of people sold their homes. Furthermore, foreclosures have increased. However, the economy is likely to bounce back quickly as the virus is brought increasingly under control.