Second Real Estate Market Prediction
The second Real Estate Market Prediction for the U.S. in 2021 from CoreLogic’s Chief Economist is that there will be more first time home buyers entering the market this year. Remember Corelogic bases their predictions on public data and facts, and being in the industry for 16 years, I rely heavily on their data. They believe the low interest rates will continue to entice buyers to want to enter the market. Low rates make for an easier transition into the housing market, because the principal and interest rates on a home loan are much lower today than they were a year ago, about 1%, and that lowers a buyer's monthly payment significantly. So much so that oftentimes mortgages are lower than what a monthly rental payment would be. And remember, they also have the benefit of writing off some of the mortgage interest. However, as with many things, the negative part for buyers is that with prices going up, initially when they purchase a home they’re going to need more money for the down payment, closing costs, and monthly reserves, so that may cause a bit of stress. It’s great once they get in the home, but getting in initially may be more of a financial challenge. I hope this was helpful. Be sure to search our YouTube channel for all 4 Real Estate predictions for 2021. And reach out to anytime for anything at all, we are always here to help. Our team is Client Focused, and Driven by Results!