4 Reasons Why People Are Buying a Home in 2021
According to many people, the real estate market is expected to continue growing in 2021, and it’s mostly driven by the lasting impact the pandemic is having on our lifestyles. As many of us spend extra time at home, we’re reevaluating what “home” really means and what we may need in one going forward.
Here are 4 reasons people are reconsidering not only where they live but also why they’re expecting to buy a home this year.
1. Record-Low Mortgage Interest Rates
In 2020, the average interest rate for a 30-year fixed mortgage hit a record low 16 times, continuing to fall further below 3%. According to Freddie Mac, the average 30-year fixed interest rate was 2.77% and the average for a 15-year fixed interest rate was 2.21% on January 26th, 2021. Many wonder how low these rates will go and how long they’ll last. I am suggesting that if you have found the home that fits your needs at a price you can afford, act now as the inventory is very tight and you may miss out on the home you love! A another decline in interest rate may or may not come!
Click here to view interest rate as of today.
2. Working from Home
Remote work is a new normal for many businesses, and it’s lasting longer than most expected. It may even be permanent for many companies. Many people in the workforce today are discovering they don’t need to live close to the office anymore and they can get more for their money by moving a little further outside of the city limits. For some people, working remotely in their current home is challenging! People are now discovering other options that are available to them to suit their work from home needs.
3. Avoiding Renovations
Many homeowners would rather buy a new home than go through the process of fixing up the one they have. Depending on what needs to be addressed, today’s high buyer demand may make it possible to skip some renovations before selling. Many of these homeowners have prioritized buying over renovating for convenience and potential cost savings.
According to the 2020 Profile of Home Buyers and Sellers report from the National Association of Realtors (NAR), 44% of homebuyers purchased a new home to “avoid renovations or problems with the plumbing or electricity.”
4. More Outdoor Space
Another new priority for homeowners is having more usable outdoor space. Being at home is driving those in some areas to seek less densely populated neighborhoods so they have more room. In addition, those living in apartments and townhomes are looking for extra square footage, both inside and out.
According to the State of Home Spending report by HomeAdvisor, of the households surveyed, almost half reported spending 27% more on outdoor living over the past year. This is a trend that’s expected to grow in 2021 and beyond.
Summary
Homeownership needs are changing more than ever and American are expected to move in record numbers this year. If you’re trying to decide if now is the right time to buy a home, contact me today to discuss your options.