The real estate market continues to be fierce in 2021. And even though the pandemic seems to be coming to a close, the housing market is not slowing down one bit. Whether you're in the market to buy or sell a home this summer, here are some of the trends to be aware of:
The pandemic drove mortgage rates to historic lows last year. While interest rates are likely to remain low, we're seeing that they're starting to inch up. The average interest rate for a 30-year, fixed-rate mortgage was 2.65% in early January. On April 8, it increased to 3.13%. It's expected to continue to rise slightly more over the summer months.
We see indicators that the inventory of available homes will increase this summer, but not by much. It certainly won't be enough to create a buyer's market. We foresee it continuing to be a seller's market through the summer months and likely beyond. There just aren't enough homes available to match the current number of active buyers. But with growing consumer confidence, the continued rollout of vaccinations, declining unemployment numbers, and higher home prices, more potential sellers will get their homes listed.
Due to the current lack of home inventory, buyers should expect to compete heavily with others putting in offers. We're seeing multiple situations where agents request "highest and best" offers from all serious buyers immediately after a home is listed. It's one of the reasons home prices continue to rise. We're also entering prime buying season, where families are trying to get situated and established in a new place before starting the new school year. What's more, demand for new construction continues to rise. Building permits have increased since the pandemic, especially with the need for more modern house plans (primarily due to the pandemic.) But with today's economy, we're now dealing with higher building costs, longer delivery times, and challenges in the construction supply chain, all of which are making new home prices rise further.
Location, location, location
While there will be some renewed interest in city living, most homebuyers will continue to focus on real estate in the suburbs. As the 'work from home' culture continues, so does the demand for homes farther outside of major metropolitan areas. Buyers want a bit more breathing and elbow room, so they are opting for less congested housing. Plus, those who work remotely from home don't have to worry about long commutes. They have the freedom to choose houses and communities with more recreational amenities -- especially since they now have more time to enjoy those perks.
Whether you're in the market to buy or sell a home this summer, we can help. Chatting with a local real estate agent (like our own Kathy Phillips) will help you get better educated on home prices and sales activity in Harbor Club and the surrounding Lake Country area. In today's red hot real estate market, speed is of the essence, so don't miss out on any upcoming opportunities -- contact us today. We look forward to working with you.