As we move into the second half of the year, many have questions on what to expect with the real estate market and what’s on the horizon.
The current real estate market is historic. Near record-low mortgage rates are fueling high demand, but a shortage of inventory has complicated buyer’s home searches. Throw a global pandemic into the mix, and we are looking at a real estate market that nobody has witnessed before. Today’s buyers and sellers face unique challenges, and it’s up to trusted real estate professionals to help guide them through these conditions.
Many folks thought that the pandemic would plummet the market, however, that was not the case. In fact, the exact opposite happened. When the pandemic restrictions started to loosen, buyers returned full force. The housing market is still hot, but leading economists say a crash is not imminent. Why you may ask? This is not a bubble. The current combination of low inventory and high buyer demand means the risk of overbuilding is minimal. As of April 2021, there was 1.16 million homes for sale in the United States. Down payments are up. More money down means more equity from the start. The average typical down payment is 15.9%. There are also more fixed mortgage rates. While mortgage rates are expected to rise slightly, they are still continuing to hover at historic lows, which makes homeownership more accessible for many new buyers. Homeownership is still the best investment.
The bottom line is, as we look at the forecast for home sales, interest rates, inventory and prices, experts remain optimistic about what’s on the horizon for the second half of 2021. Contact our office today to discuss how we can navigate this market together in coming months.
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Source: Buffini & Company. Used by Permission.