2020 was a year like no other. It was a challenging year for many of us, including the south shore real estate market as well. The good news is that interest rates hit record low levels. Many Americans were able to take advantage of these low rates by refinancing or upgrading to a larger home. Bad news is that inventory also hit record low levels. Great if you're selling your home — not so much if you were buying a home.
So what should we expect in 2021? How will this impact local buying and selling strategies? Many analysts are predicting interest rates to maintain or slightly increase. This may not happen immediately; analysts will continue to monitor the economic recovery from Covid-19 during Q1 of 2021. Don't worry, a quarter point increase in Q1 or Q2 won't prohibit you from buying your dream home. Check out the article by Kathy Orton from the Washington Post that aligns with my analysis.
The 30-year fixed mortgage rate, the most popular loan product, sank to its lowest level on record this week, marking the 17th historic low it has hit in less than a year. But rates may have hit bottom as many experts predict them to rise in the coming year. (MBA mention)
What does this mean to you in 2021? Whether you're buying or selling, make sure you're working with your agent (preferably CK) to develop a winning strategy by reviewing your short-term and long-term goals. Right strategy = WIN. Sellers will still be in the driver's seat with low interest rates combined with low inventory. If you're a buyer — don't FREAK OUT! There are still ways to win even in this highly competitive market. Remember, start with discussing your plans with your agent. Allow them to tailor an approach to help you win in any negotiation. Remember a home is a long term investment that traditionally out performs any market.
Trends in 2021…
- Suburban Living: Metropolitan cities will continue to see a decline in consumer housing demand. Economic analysts forecast a continued decline in 2021 for urban real estate.
- Increased Square Footage: Consumers are requiring more space inside and outside as time at home increases. Virtual office hours & home schooling calls for separate spaces.
- Low Inventory: As more and more people leave the city life for more space and convenience, we anticipate inventory levels to remain low in the 'burbs.
Well, there you have it — from an expert.