Becoming a homeowner is the most important financial decision that the average American will make in their life. However, people are often concerned by the apparent complexity of buying a home as well as wondering if it’s the right time. As a rule, the time is always right to begin investing in your future through a home. However, 2021 real estate trends point toward a uniquely advantageous opportunity for new homebuyers to enter the market. The latest trends in the housing market consistently emphasize the value of becoming a homeowner during this period of rising prices and low-interest rates.
Emerging Trends in the Housing Market
Overall, 2021 real estate trends are a mixed bag that will come as good news to some and bad news to others. The demand for homes is at a record high while interest rates are still remarkably low. In short, 2021 is shaping up to be an excellent year for those who can buy a home and a poor one for those who need to rely on renting.
Freddie Mac Reports Declining Interest Rates
Interest rates have been steadily declining in recent years, but the post-COVID stimulus has driven them to record lows. Mortgage interest rates are as low as 3% as of July 2021, up from a low of 2.74% in January. While 2021 real estate trends indicate that interest rates are likely to continue rising as the economy rebounds from the crisis, 3% is still much lower than the 4.7% interest rates of January 2011.
Affordable Housing Shortage and Rising Rents
With the price of housing going up, it’s driving the affordable housing shortage and increasing rents across the board. In 2021, rents have increased by as much as 7 percent, and they’re likely to continue increasing at similarly rapid rates in the near future.
Single Family Home Prices Rise
As of July 2021, the median listing price for active listings has climbed to a new height of $385,000. This is an increase of 10% from July 2020, which in itself was a leap above 2019 levels. In 2019, the median listing price of homes was as low as $315,000. The price of housing is dramatically outpacing inflation and most assets, which is encouraging more and more investors to buy homes. In turn, this confidence helps increase prices and maintain strong but sustainable increases in home valuation.
Excellent Long-Term Prospects to Buy a Home
While it’s never a bad time to buy a home, current trends in the housing market are particularly advantageous for anyone looking to become a homeowner. While there are many 2021 real estate trends to analyze, they all point towards renting becoming more expensive and homeownership growing more lucrative. If you take steps towards buying a home, you can take advantage of record-low interest rates and ride the investment-fueled boom in property valuation. In particular, Bucks county luxury real estate has gained value at a rate even higher than the national average.
If you’re planning on entering the market for real estate, there’s no better time than today. Home sales are only rising in value, in large part due to the fact that the outlook is so positive for owners and landlords. Many people fear that buying a home is beyond their resources, but people are also often surprised by the mortgage payments they can afford. Reach out to The Joseph Bograd Real Estate Team today to hear the latest trends in the housing market and find houses for sale in Bucks County and the surrounding areas.