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Real Estate Trends 2021

Real Estate Trends 2021

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2020 was an interesting year for the real estate market, to say the least, and its ramifications are sure to be felt through the rest of 2021 as well. From the rise of alternative financing methods like residential bridge loan lenders and North Coast Financial hard money loans to the dropping of many mortgage rates to historic lows to the high demand for certain sections of the market like single-family homes, there are numerous interesting trends continuing to develop today. Whether you work in real estate, are a homeowner curious about selling your house and upgrading or you just want to stay informed, you can read on to learn about some of the top real estate trends that will likely continue to grow this upcoming year.

Mortgage Rates Are Likely To Stay at Truly Historic Lows

One of the most striking shifts that occurred in 2020 heading into 2021 in the real estate market is the drop in mortgage rates. Today, rates are at historic lows, encouraging buyers to apply for loans. Some buyers may opt to work with a hard money lender Los Angeles CA while others may apply for traditional bank mortgages, but in either case, the climate is right for borrowing for a home.

Expect Demand for Spacious Homes To Continue Growing

Possibly due to the sudden need for isolation and space for distancing, the demand for spacious properties has skyrocketed over the past year, and the trend doesn’t seem to be letting up anytime soon. In particular, sellers of the following property types can expect their homes to sell for at least market value and to possibly be snapped up quickly:

  • Single-family homes in general
  • Homes with multiple bedrooms, ideal for quarantining
  • Suburban or rural homes
  • Homes with large yards and significant outdoor space
  • Apartments or townhomes with balconies or other outdoor access

There May Not Be Enough Homes for Sale To Meet Buyer Demand

Perhaps one of the ironies of the 2020 rush to purchase single-family homes is that there are not currently enough of these homes on the market to meet buyer demand. For buyers, this can have several ramifications, such as potentially facing bidding wars upon making offers, having to shell out more for a property or waiting longer before having an offer accepted. For sellers, however, the climate is just right to list a property. Due to this supply-and-demand issue, you can expect that home prices in many areas will continue to rise throughout the year.
It may come as no surprise that after 2020 upended the housing market, 2021 is likely to see some interesting trends continue. From the rising seller’s market to the shift in mortgage rates to the increased interest in spacious single-family homes and more, several real estate trends that started last year appear highly likely to continue this year as well. Whether you’re a homeowner, a real estate agent or are just curious, knowing more about these trends can prepare you to understand shifts in the real estate world you may see in 2021.


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