Will home prices increase this Spring?
The market in 2020 and the early part of 2021 has been kind of crazy. There are a lot of things that go into that from low interest rates and low inventory and even a low number of homes being built around the area. Because of this, the prices in many areas jumped 10% or more, giving sellers a good incentive to sell and left buyers looking around for a new place to call home. But will this trend continue?
Many believe that the wild price growth that was found in 2020 is going to slow down. This will come about for several factors. First, because sellers see how much the market has grown and changed, they may decide it is time to sell and take advantage of it. This will bring more homes to the market, giving buyers a chance to make purchases rather than waiting around for the perfect home.
Another thing that may change is the price of building supplies. In 2020 and early 2021, the price of lumber and building materials was high. This made it unaffordable for many to build a home, so they had to wait for a home to come on the market. As these building supplies lower in price, some inventory may open up while homes are being built.
This does not mean that 2021 is not a good time to sell your home, especially in the spring. Prices will still rise because there are so many buyers out there who want to jump into their new homes with a low interest rate. Some may find that with these lower rates, they are finally able to purchase their own home for the first time while others are finally tired of renting. There is still a good deal of demand for good homes.
It is expected that prices will jump about 5.7% in this coming year compared to 10% from last year. While this is not quite as high as before, it is still a good percentage and can help sellers make a profit off their homes. When added to the 10% from the year before, sellers will see a huge increase in their property values still.
Because of a few years of high price increases, experts are expecting that affordability is going to become a big challenge, making housing more expensive than before. But this will even out a little bit because the prices of homes will increase slower than the year before. It is also believed that mortgage interest rates will go up by the end of the year, which will make mortgage payments more expensive and can limit how many buyers enter the market.
Whether you are looking to buy or sell a home, 2021 is going to be an interesting year in real estate. You need to have a professional on your side to make everything go smoothly and help you get the best deal.
When you are ready to buy or sell your home this spring, make sure to do it with a realtor you trust. At Top Tier Realty, we are here to help you make the right decisions in the real estate market. Our team of professionals are here to ensure that you get the most out of your whole experience. Contact us today to get started!