The new year has officially begun and everyone is on the edge of their seats wondering what 2021 has in store for us. The Ulster County Board of REALTORS® team has been diligently monitoring the ebbs and flows of housing trends as we closed out a historic year in 2020. There are many variables that have roused a flurry of predictions of what the housing market will look like in the new year, with the pandemic being a major catalyst for changes in housing inventory as well as demand. Not only are inventory needs changing, but mortgage rates, demographics, and the availability of remote work are all contributing to an evolving market.
One of the major perks of working closely with a REALTOR® is having a professional on your side throughout the home buying process. Understanding the housing trends in 2021 is a great way to set yourself up for success to ensure you’re seeing the best houses for you, as well as locking in the best interest rates and funding opportunities available.
With that said, what will the housing market be like in 2021? Let’s take a look at the major factors shaping the housing trends predicted for the new year:
Mortgage rates are historically low: While experts are predicting mortgage rates to begin to rise again in the latter half of the new year, rates are currently very low and to the buyer’s advantage. Don’t worry about any massive increases in rates, as predictions are strong that all increases will be gradual. If you’re interested in refinancing your mortgage, don’t wait until the last minute. Experts are advising to make moves while rates are still low.
Housing inventory not meeting demand, but new construction expected to rise: Mortgage rates are at an all time low, many are working from home, children are attending school online. These are just a few of the factors driving demand for houses for sale. New home construction struggled to keep pace with this growing demand, but builder confidence reached an all time high in 2019 and continues to grow. As people are more willing to move away from major cities, the opportunity to build in more affordable areas is creating stronger opportunities for builders to build profitably.
Location, location, location: With the pandemic creating a push for remote work opportunities, re-locating has become a real possibility for working professionals and families across the country. Home buyers are becoming increasingly open to purchasing land in suburban and rural areas due to affordability and being able to drop their commute to the office. When surveying those who are still commuting for work, Realtor.com reported consumers were more willing to commute longer distances post-pandemic.
Millennials and Gen Z are changing the housing market: The newer generations entering the housing market are changing the days of old. Technology is one of the biggest factors at play, as Millennials and Gen Z are using their phones as an integral part of the home buying process. The pandemic has also played a role in supporting this technological shift, as in person showings and closings waned to ensure all parties are safe.
Doing your research as a buyer can be daunting in a market like this, and our goal at UCBR is to work with you to ensure you’re comfortable, informed, and supported throughout the process. We’d love to hear from you and help guide you in weathering the housing market of 2021. You can learn more about UCBR here, and if you’re looking to get in touch, you can find our contact information here. Let’s get you into your dream home ASAP!
