We have successfully navigated the first quarter of the 2021 housing market and are entering what is considered by many as the next buying cycle. What do we need to know? First, rates will climb slightly, but still be described as low. On the back side of that is the simple truth that in the current seller's market, prices will continue to creep up as buyers outnumber sellers.
Let us get right to it then:
1. Hard Fact 1: There are more buyers than sellers. "It is a sellers' market in just about every part of the country," according to Christopher Arienti, broker and owner of Re/Max Executive Realty in Franklin, Massachusetts.
2. Hard Fact 2: Buyers are going to have to make some concessions in hot markets. The speed with which some homes are entering and exiting the market indicates that when you find a home that meets "most of your wish list" you will have to act fast and make a solid offer.
3. Hard Fact 3: Home prices are expected to creep up. "Prices of existing homes are projected to increase 3.1% in 2021, compared with a 6.7% jump in 2020," according to forecasts from Fannie Mae, Freddie Mac, the National Association of Realtors, and the Mortgage Bankers Association.
4. Hard Fact 4: Home buyers will continue to utilize digital tools when searching for a property. 2021 has not changed many home buyer's reliance on digital home sites to find properties and nothing appears to change that fact moving forward. "Social-distancing regulations vary by state, county and city and will loosen with a successful rollout of vaccines. But Arienti predicts that greater reliance on some online tools to increase efficiency will outlast the pandemic."
Active buyers will have to have their proverbial "ducks-in-a-row" through the remainder the 2021 housing market to acquire the home of their dreams, and those are the hard facts.
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