The real estate market is experiencing a tough time because of the pandemic situation. Development projects and new constructions are dwindling in number, as people are finding it harder to retain their jobs and businesses. Putting food on the table regularly and managing the other regular expenses have become more challenging than ever before. This is why, before thinking about investing in the Hottest real estate market in Arizona, you should also look into the most popular real estate trends for 2021.
The points to keep an eye on
Indeed, all of these trends won’t sound positive or helpful, but there is no denying that the people are ever hopeful, and the market will bounce back in no time, now that there is a solution to the pandemic. The trends that you have to keep an eye on are:
Homebuyers will have fewer options
In comparison to other years, 2020 wasn’t good for the real estate and construction industry. As a result, fewer projects were built, resulting in a scarcity of properties for people to buy. Therefore, the options that are opening up in the market right now are getting snatched faster. For instance, in October of 2020, the inventory for properties have gone down almost 20% compared to the same time in 2019. At the same time, 7 out of the 10 houses being put on the market are getting sold in less than a month. As a potential buyer, you need to understand the importance of compromising some features, expanding your search, and getting pre-approved as fast as possible.
The prices for houses are still rising
If you have thought that due to the real estate market’s present condition, you will get some deals and discounts on the prices of the houses, then you are wrong. According to the available data, in October of 2020, the prices of homes have gone up a striking 16% in comparison to 2019, which has taken the national median up to $300,000. This also confirms the 100 months of the year to year price gain for houses. As a potential buyer of a home or piece of property, you have to look into possible financial solutions that will be able to help. This way, you can buy a new place and that too, without going bankrupt or adding to your stress level.
The mortgage interest rates are still low
This is good news for buyers and potential buyers because they can now arrange for the money required for buying a property without worrying about a steep monthly installment. With the pandemic influencing every aspect of life and earning, people are finding it hard to make money. Buying a house may seem like a ludicrous idea at the moment, but if you can, then you should go for it as well. Letting go at the moment and wait for everything to suit your requirements perfectly won’t help. This is because; things will only get more expensive with the time. In 2021, the mortgage interest rate will hover around 3%, and that is a powerful reason for you to look into real estate investment this year.
The trend of online real estate services is growing
The pandemic has made people focus on one thing: the importance and need for social distancing. A disease that spreads through social interaction has finally put some restrictions on such interactions, and business and various industries are adapting accordingly. The real estate industry is also changing, and instead of face to face services, both businesses and potential investors are seeking substitutes. Online real estate services are proving to be a big hit in such a situation. From going through the listing of properties online to taking a virtual tour of the property and even hiring a virtual agent, people are adapting as per the situation.
Keeping an eye on these trends will help you to plan your real estate ventures in 2021 better.