Saturday, February 20, 2021 / by Breanna Thornton
Are you wanting a short read on what the market looks like right now? This article is dedicated to giving you a brief recap on real estate, and hopefully will help you figure out the best option when it comes to buying or selling.
Has the Market Grown or Declined over the Past Year?
Image from Bioworld
With all of the crazy events going on in 2020 like the coronavirus and the election, most believed the housing market would take a serious hit like the rest of the economy. While there was a slight dip in the market during the beginning weeks of the pandemic, the rebound was astronomical. During the early summer, sales went through the roof, shocking many people in the industry.
The market went through the largest growth that it has in the last 15 years! According to research from Zillow, the home stock rose $2.5 trillion, bringing the total worth to $36.2 trillion. This keeps hope in the housing market strong, even if other sectors of the economy are tilting back and forth.
How are Mortgage Rates Looking?
Image from The College Investor
According to the MBA Weekly Mortgage Applications Survey, mortgage rates went from 2.92% to 2.95% last week. As the mortgage rate trend continues this way, refinancing becomes more popular since homeowners want to take advantage of affordable monthly payments while they are available.
Multiple experts believe the mortgage rates will raise throughout the year slightly, but not enough for buyers to panic. Rates should hover around the 3% mark for the next year or two, while home prices continue to appreciate.
Are Suburbs or Cities More Affordable?
Image from Joel Kotkin
It seems pretty typical to believe that moving outside of the inner city means you can get more square footage or land for less money. Also, since many workers are starting to prioritize working from home, there is more interest in moving outside of the city. Buyers are also more likely to build a home on land in the suburbs since there is more space. However, all of this doesn’t necessarily mean that living in a suburb is cheaper than the city. It all depends on the area. For example, St. Louis, Indianapolis, and Cincinnati tend to have cheaper housing in the cities. As you look for places you would like to settle, compare pricing of the inner city and the suburbs. This could be a game changer for where you end up!
We hope this has been a helpful market update! Just remember that the market is highly favorable for sellers at this time. However, don’t stress about turning around to buy after that! There are options available if you are willing to be patient and work with a qualified real estate agent. You deserve to be in your dream home, so let us help!
Header image from Real Estate Data
Facts from Zillow & First United Mortgage Group