The housing market has been changing at a very fast past these past few months. Due to a large number of Americans losing their jobs and the COVID-19 pandemic, banks have a tight grip on mortgages causing home prices to skyrocket. That means that the pressure is on as far as selecting the right home for you and your family. But there are also a lot of factors outside of your control that you have to keep in mind when looking at real estate.
For one, you should be aware of current market trends but you also need to have some kind of life plan ahead of you. Knowing where you and your family will be 30-years from now will help you make a more solid decision in what kind of home you should be buying than anything else.
Aside from that, we have some seasonal trends that we think that you should be aware of in case you’re thinking about buying soon.
1. Home Prices are Rising
As everyone knows after the COVID-19 pandemic everything went up in price and to make things even worst there’s been a shortage of a large number of supplies. This is probably a bit of bad news for those potential buyers that are holding out in the hopes that home prices will start falling somewhat. There are two major factors working against this: Historically low rates and moderate availability of inventory in the nation’s most desirable locations.
The number of homes in the U.S. listed for sale on Zillow in December was down 7.5% from the previous year and is at the lowest level ever recorded by the company. While that doesn’t mean that millennials should rush into something now that they can’t afford later, it does make the current period a historical opportunity for buyers – as well as sellers.
One trend that many real estate market analysts are watching is the shift in ownership styles for the baby boomer generation who are fleeing larger houses (and colder weather) for warmer climates. This could present a real boon for millennials that need a home to accommodate a growing family without having to turn to new construction, which can often be expensive.