Real Estate trends are always changing. Here’s what you need to know to stay up-to-date with the latest info and news.
The housing market has been very good in the last few years. Buyer demand goes up, home values soared, and mortage rates hit historic lows.
During an otherwise very difficult year (Covid-19 pandmic), the housing market was one of the few bright spots. Of course, the real estate market is always changing, so it’s important to stay knowledgeable about the latest trends.
You also need to be aware that there are different conditions in every city and state. This blog is mainly focused on the Newport Beach real estate market, but in this article we will talk about the general real estate trends that you will be true all over the United States.
Check out some of these trends below.
Housing inventory
Housing inventory is the supply of homes that are currently available for purchase. It’s a very important factor in the housing market.
The way that it works is as follows:
- When inventory is low, and demand is high: seller’s market
- When inventory is high, and demand is low: buyer’s market
In 2021, the supply has been very low, and the coronavirus pandemic only worsened this. Sellers have been very hesitant in having strangers in their home, so there haven’t been a lot of for-sale listing. In 2020, it even reached its lowest level ever recorded.
The listings have since recovered slightly, but it is still pretty low.
Housing affordability
Housing affordability also is very important. When factoring in rates, income trends, and inflation, consumer house-buying power was actually up 21% by the end of 2020.
Real estate prices
Generally speaking, high demand and low supply cause housing prices to rise.
At the national level, home prices have been rising for some time. As of the end of 2020, the median home price was just under $347,000. Home prices jumped 11% across 2020 alone.
We can conclude that home prices continue to rise.
Mortgage Interest Rates
The average mortgage interest rate has been low lately. The average rate for a 15-year fixed-rate mortgage dropped to 2.2% in January 2021. This has been one of the lowest rates in history.
Economists even believe the interest rates will hover aroud 3% for the rest of 2021. Interest rates are very low right now, and that can help with affordability. Just don’t get pressured in buying a house when you are not ready.
Online Real Estate Services Are Growing
Of course, you have heard of real estate services like Zillow. The online real estate industry is maturing very fast. There are more and more online services that offer to buy and sell your house for you.
Some of these services include: Third-Party Buyers, Virtual Agents and Mobile or Online Closings.
A real estate market crash looks unlikely
According to these trends, it’s unlikely that a real estate market crash will happen. But don’t trust my word on this, a market crash usually happens when people don’t expect it.
Risky Buying Options Are More Accessible
There are some other ”creative” ways to purchase a home as well. These risky buying options have become more accessible in 2021. But be sure to know what you are doing.
The 2 most popular ones are called ”Rent-to-Own” and ”Loans for Down Payment”.
These are the real estate trends you should be aware of. Thanks for reading this article and feel free to check out our homepage as well.