In 2021 there has been an explosion in the real estate market. These are some trends in the market and they are predicted to stay this way until 2022.
COVID and Homes
Due to the pandemic, many people are looking to become homeowners. They have the stimulus money to use as a down payment. They are also looking to relocate after being locked down in an apartment. Homeownership is on the rise.
Lower Rates
Interest rates for a home mortgage are at an all time low. With these lower interest rates, people are locking in their mortgages. Lower interest means a lower monthly payment and people are jumping at the chance to take advantage of the low rates.
Increase Prices
With more people looking for homes than homes that are available the price of the homes are increasing. Homes are going for up to 20 percent over their asking prices. This makes it a competitive market for buyers and sellers are getting some nice profits.
Buyers
More millennials are becoming homebuyers. They are tired of paying the higher prices for rent and are looking for something that they can own. This generation is also looking to settle down and they are looking to make an investment in the purchase of a home.
Smaller Cities
While there is still a demand for housing in larger cities people are looking to move to the up and coming or second tear cities. These cities show a promise in the employment market. The housing in these cities is also much less and more affordable. A person can still live in a city area and afford to become a homeowner.
These are some of the current market trends that are expected to continue into next year. The market is up and people are interested in becoming homeowners.