As we enter the 2021 housing market, supply of existing homes for sale is very low and the demand just gobbles up new homes as they come on the market. It’s no wonder that buyers may be confused and overwhelmed as to what to do. Home sales are predicted to increase by 21.9% with home values expected to rise 10.5% by December 2021, and housing inventory in the 50 largest U.S. metros declined by 41.8% in January year-over-year, according to a recent report by Realtor.com.
Some buyers think it may be prudent to wait for the market to cool. No one has a crystal ball, but it may be helpful to look at some of the aspects of our current real estate market for guidance.
Several years of inventory shortages have been exacerbated by the unnatural demand created by the pandemic in nonurban areas. Certainly, here on the North Fork, we have seen an influx of buyers who have left their city apartments and purchased or rented here in Southold Town. School enrollment is up, and there is a visible increase in activity in our neighborhoods. Homes have increased in value, due to the demand, which has also prompted aggressive bidding wars. And low mortgage rates have helped make higher prices more manageable.
So, does it make sense for buyers to dive in now or wait for the pandemic and the frenzy to end? Clearly, the time to buy is tied to what is best for you, the buyer. If you have been thinking seriously of buying a home do your HOMEwork! Sit down and review your needs and affordability as it is now. Speak to your financial planner, mortgage broker, or banker and understand what you can afford with today’s mortgage rates and today’s home prices. Mortgage rates are low right now and may continue for a while, however, the change in administration, has brought changes in policy that certainly will continue and may affect mortgage rates in the near term. As with any consumer decision, it is important to be informed, research the market and shop around to find the best deals possible.
Looking into that crystal ball, NAR Chief Economist Lawrence Yun expects strong home sales momentum, with sales up roughly 8 to 12% in 2021 vs. 2020, as well as prices rising more moderately, about 4% nationwide. These projections suggest that if your finances will support a home purchase on the North Fork, you should not wait. Do it now! Lastly, and it goes without saying, but I will: sellers - with the scenario of low inventory and higher prices, if you’re thinking of selling, do it now! We’re here to help- call us! 631-765-5333
SOURCE: WHY BUYERS SHOULD DIVE IN NOW? Liz Dominguez,
RIS Media, February 6, 2021.
