Today, the real estate market is soaring. The values of residential homes are rising, and that’s fantastic for homeowners. In 2020, there was a double-digit increase in home values – a trend also occurring in 2021.
However, due to skyrocketing prices, some are questioning the affordability in this current housing market. Experts in the field of Real Estate emphasize that homes today are less affordable now than they were last year. Black Knight, a leading provider of data and analytics across the homeownership life cycle, reported on the issue.
The historical averages of the national payment to income ratio, defined as “the share of the median income needed to make the monthly payments on the median-priced home.” The study reveals:
The Aaronson Group has listed 31786 5th Avenue Laguna Beach, Orange County, California, for $1,995,000. (MLS® OC21130267)
Conveniently located in the heart of South Laguna Village. A short block off Coast Highway near beaches, parks, shops, restaurants, and medical facilities. Custom-built new from the ground up in 2004 on a larger than an average-sized lot with potential to expand in the future. The expansive, chef’s caliber kitchen includes an abundance of furniture-grade cherry cabinetry, loads of fresh quartz countertops, Viking, Bosch, Kitchen Aid Appliances, and captivating ocean views. Light and bright spacious family room feature a gas fireplace with custom wood mantle and a large ocean view deck overlooking the tranquil rear grounds
If you’re thinking that waiting a year or two to purchase a home might mean you’ll save some money, think again. Mortgage interest rates are currently very low, but experts across the board are forecasting increases in both home prices and interest rates.
As we head into the Summer of 2021, many wonder if big changes are coming to the housing market. Here are what some experts have to say about the main factors that will push the industry and the economy ahead in the months to come.
“. . . homes continue to sell quickly in what’s normally the fastest-moving time of the year. This is in contrast with 2020 when homes sold slower in the spring and fastest in September and October. While we expect fall to be competitive, this year’s seasonal pattern is likely to be more normal, with homes selling fastest from roughly now until mid-summer.”
National Association of Realtors (NAR)
“Sellers who have been hesitant to list homes as part of their personal health safety
With so many buyers looking for homes to purchase and so few houses available today, there’s a substantial increase in bidding wars, and homes are selling fast. According to the latest Realtors Confidence Index Survey from the National Association of Realtors (NAR), houses on average are receiving over four offers from buyers, and they’re selling in less than three weeks.
During normal housing markets, renovations are an important way to add value to a property. However, with so many buyers competing for such a low supply of available homes right now, renovations may not be as critical as they normally would.
1. There aren't enough homes for sale right now.
A normal market has a 6-month supply of houses for sale, but today’s housing inventory sits far below that benchmark. According to the National Association of Realtors (NAR), there’s only a 1.9-month supply of homes available today. As a result, buyer competition is high, and homes are only on the market for about 21 days, during which time many receive multiple offers from hopeful buyers.
In this market, it may be wise to let future homeowners remodel the
There are many misconceptions about buying or selling a home today, making it difficult to navigate the current real estate landscape. Here’s a little clarity when it comes to 5 common myths about the 2021 housing market.