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Real Estate Trends After 2020

With so much that happened across the country in 2020, you might be wondering how it’ll impact real estate trends during 2021. The mass relocations and purchases, along with the reluctance of existing homeowners to find a new place to live during the 2020 pandemic have driven the number of homes for sale down to record lows. This in turn has propelled home prices to new highs. Low mortgage rates and the desire for the comfort of working from home has fueled the home-buying frenzy depleting inventory. There are more people who want to purchase homes than are homes on the market causing intense bidding. For those with cash to spare who are prepared to compromise, now could be a decent time to scoop up a property.
While the pandemic did disrupt home sales in the spring of 2020 (which is usually considered the hottest season for real estate), the market quickly made an impressive rebound. Real estate experts have reported that the surge in home sales toward the end of 2020 made up for the spring market losses.

Will We See More of the Same Results in 2021

For the Buyer

If you’re considering buying among the bidding wars of the 2021 housing market, you might feel intimidated. But there are great reasons to still buy that dream house. Interest rates are still low, and investors can get in on the 1031 exchange (while it still exists). There are deals out there for future landlords too.  Just because it’s a seller’s market for homes all around the country right now, don’t let fear keep you from finding the perfect house.

Inventory has been incredibly low and was down nearly 30% in the early months of 2021 compared to the previous year. In the spring of 2021, most homes sold around 20 days faster compared to the past several springs. That doesn’t leave much time to be picky when it comes to choosing a home. Low inventory means you need to be ready to put an offer on a home quickly because the best homes will likely be snatched up fast. If you want to find a good home in this slim market, here’s some advice:

  • Be willing to give up some “nice-to-haves” for your “must-haves.”
  • Find the least expensive home in the best neighborhood that you can afford and upgrade over time.
  • Work with a real estate agent who really knows the area to help you find a home that fits your budget and lifestyle.
  • Try a less expensive neighborhood.
  • Get pre-approved for your mortgage before you hunt for a house so you’re ready to put an offer down on a potential home before someone else does.
According to “Emerging Trends in Real Estate 2021” Below are the top 10 real estate markets for 2021
  1. Raleigh/Durham, N.C.
    2. Austin, Texas
    3. Nashville, Tenn.
    4. Dallas/Fort Worth, Texas
    5. Charlotte, N.C.
    6. Tampa/St. Petersburg, Fla.
    7. Salt Lake City, Utah
    8. Washington D.C./North Va.
    9. Boston, Mass.
    10. Long Island, N.Y.

For the Seller

If you’re looking to sell, there is no question that there are plenty of opportunities. Given the shortage of inventory in most regions of the country and the high demand for homes, many rural and suburban homeowners continue to realize phenomenal returns on their properties. In some small towns, prices have soared. If you’re even contemplating selling, why not see how much you can get for your home in today’s hot market? If more sellers do come forward, this should result in an overdue market correction, eventually bringing home prices closer in line with current home values.

Why Choose Providence?

Whether you’re buying or selling a home in Charlotte, Gastonia, or Concord NC, we understand you have a lot on your mind. But we’re here to help you with anything you need. Use us as a resource, ask us questions, and browse our website for helpful tools and real estate articles. We’re excited to use our passion and knowledge to help you achieve your goals. Visit our website https://www.providencenc.com/ for more information.