Why 2021 Is A Great Year to Buy Real Estate

When the COVID-19 pandemic was unleashed on the world last year, recovery wasn't in sight. However, vaccine rollouts across the globe have shown signs that 2021 can be the year of recovery. According to CDC, 60% of the US population has received at least one vaccination shot. As the vaccination rates go up, the US will soon be on track to full recovery from the pandemic.

Buyer signing a mortgage agreement for a new house


So how does all of that relate to why you should buy real estate in 2021? Simply put, the circumstances are ideal for those looking to buy real estate, especially on a mortgage.

If you're already planning to buy a new house, it's okay to be unsure, considering the uncertain situation. However, as the US recovers from COVID, the landscape is getting much clearer. Here are some reasons why you should consider buying a new property in 2021.

Historically Low Mortgage Rates

According to the latest reports from Yahoo! Finance, mortgage rates in the US are still falling, despite the COVID recovery. In fact, the rates have remained under 3% for a fourth consecutive week, as per the 16th May report.

For the housing markets, these low rates are proving to be a boon. Interested buyers should consider this the opportune time to buy a house and take advantage of the historically low rates.

Buyers can get their dream house at a low mortgage rate


Those who are unsure about buying a second property can take advantage of the low rates on their existing mortgages via refinancing and then look to buy a new house. In simple words, the time to buy a new house is now.

Summer Might Spell an Increase in Rates

If you think that the mortgage rates will continue to remain low or may even drop further, you could be mistaken. Experts have suggested that mortgage rates are expected to increase in summer with the fast acceleration of consumer inflation.

According to Bloomberg, The Federal Reserve is optimistic about keeping interest rates low until 2023 and sees the increasing inflation as only a bump. However, strong post-COVID economic recovery could see an increase in the Fed's interest rates by next year, if not by the end of 2021.

Whether or not the mortgage rates start increasing in the summers, it is primarily expected that the remainder of 2021 will be a good time for homeowners and prospective buyers. Whether you're looking to finance a new mortgage or refinance your existing one, this is the ideal time to do it.

Low Real Estate Supply Fueling Buyer Interest

If you're already a homeowner but want to upgrade to a bigger or better house, the current situation is perfect for sellers as well! With the low supply of houses, meeting buyers' demand isn't so easy, meaning you can get an excellent price for your property.

In conclusion, COVID-19 will still be an issue in the US in 2021, but the country is on the road to recovery. The economic recovery will be slow, which means this is the perfect time to get ahead of the crowd and buy real estate while taking advantage of the low mortgage rates.

If you’re looking for a realtor in Fayetteville, NC, to sell your house, get in touch with Phillip Fehler, a Fathom Realty broker in Fayetteville.

With Phillip Fehler, you can get a free valuation of your house, check out the featured listings, or put up your house on seller listing. Contact now to learn more about how Phillip can help you.

 

 

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