In many ways, 2020 was a challenging year. The COVID-19 pandemic affected every industry in some capacity, with real estate being no exception. Agents, buyers, and sellers all had to adjust day-to-day operations accordingly to work through home transactions during the COVID-19 pandemic. Although we are still very much working through unprecedented times, we can anticipate a few differences in 2021. With this, here are some important points that homebuyers should know for the start of a new year.
Mortgage rates will eventually increase.
We have seen historically low interest rates over the past year. As such, many Americans decided that now is a great time to buy, despite the pandemic. Although rates are still at record lows, it does not mean that they are going to stay there for the foreseeable future. Even if rates do not significantly increase in 2021, they are bound to increase in the next few years. As such, now could be a great time for a buyer to look for their next home if they require a mortgage.
Most home searches will start online.
The COVID-19 pandemic has changed the way that people shop for homes. Due to various social distancing precautions, people have become more reliant on virtual applications throughout different stages of the homebuying process. For example, virtual home tours are more commonly used because they can better portray a home than photos alone. In a competitive real estate market, buyers who want to remain competitive must be prepared to shop for their home online.
Buyers must think ahead in this market.
We are seeing more prospective buyers than sellers in our country. As such, buyers need to be prepared by getting prequalified, working directly with their agent to understand the local markets and conducting extensive research on their own. Buyers must prepare and know what it takes to make a strong offer when the time comes.
