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:
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.
Last year, many homeowners were wary about selling their houses due to the emerging the health crisis. This year, however, homeowners are beginning to regain their confidence when it comes to selling.
Fannie Mae's latest report shows that 57% of consumers believe now is a good time to sell, and experts are optimistic that consumer positivity around selling will lead to more homeowners making moves this year. Doug Duncan, Vice President and Chief Economist at Fannie Mae, explains:
“Overall, the index’s monthly increase was driven largely by a substantial jump in the share of consumers reporting that it’s a good time to sell a home, with many citing favorable mortgage rates, high home prices, and low housing inventory as their primary