Following a decade of steadily increasing house prices, 2021 promises to be an interesting year for real estate. Read on for some of the hottest billed trends ahead of us.
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Comprising For Affordable Living
Skyrocketing house prices and living costs are pushing an increasing number of home buyers to look beyond the usual cities. Areas that once pulled homeowners into their bustling metropolises are now simply unaffordable for most people looking to buy a home. Instead, soon to be homeowners are looking to alternative cities and hubs, like Raleigh and Portland, where the property is more affordable.
Likewise, the absolute musts of past property booms, such as the need for easy highway access and attractive districts are becoming less necessary for buyers looking to compromise for affordability. Expect to see this trend continue with once overlooked states and communities experiencing spikes in house sales.
You may also check: Tips To Sell Your Property Quickly For The Highest Dollar
Who Will Buy In 2021?
Baby boomers are reaching a crossroads. With their families grown, they are forced to consider downsizing. Though more and more baby boomers are deciding not to downsize, those who do may struggle to get the asking price they are hoping for.
2021’s buyers will mainly be millennials and millennials have firm ideas about what they want. Smaller homes are seemingly more desirable for today’s buyers. Meaning the larger family homes favored when baby boomers were buying their first homes are no longer as popular.
Global Politics
Global politics will continue to have a significant impact on house prices. Property investors from Asia have already lessened due to decreasing incomes in countries like China. Likewise, investment from Europe has dipped since 2018’s tax laws made it less favorable for foreign buyers too.
2020 Mortgage
Possibly the most exciting news for homebuyers in 2021 is the prediction that mortgage rates will remain low. 2020 saw a steady drop in interest rates to as low as 4%. However, in recent months there have been reported increases that suggest predictions are optimistic, premature at best. Watch carefully at the start of the year to see which way interest rates will go.
Lending patterns are set to adjust. Following the recession at the end of the last decade, borrowers were met with restrictive lending rules. Requirements are improving dramatically allowing more people access to borrowing. Where in the past, high debt and low savings may have stood between you and your first home, new rules mean conventional lenders are now an option for you.
The Influence Of Technology On The Property Market
Technology’s influence is threefold. Firstly, it has finally started to impact how we sell and buy. Real estate agents haven’t been the quickest to adopt technology into their selling methods but the video is becoming more and more common. Buyers obviously want to have a good look around potential homes but if buying for you means moving to a different state or city then viewings are tricky. Video house tours look set to become standard practice to help agents reach that distant audience.
Newer builds and remodeling projects are now including more digital luxuries as standard. Remote operating for heating, digital security surveillance, and concierges are a few things to look forward to. These so-called smart homes are intended to simplify life for homeowners. Making the digitalizing the mundane and making digitally irreplaceable in our lifestyles.
Lastly, the continued growth of digital business remains an influencing factor on the property market. Tech companies themselves are also looking outside of the usual areas. Smaller tech hubs are popping up around the country, bringing their workforces with them and attracting even more as they hire and grow.
The Rise of Communal Living Styles
Much has changed in 10 years, as well as the increasing dependency on technology, how we live has shifted too.
Sustainability and green commutes are growing trends in communities. As Millenials move into new and old communities they are putting their own spin on traditional community makeup. Community spaces for gardens, outdoor movie screenings, and gatherings are increasingly present in newly built communities. Whilst already established communities and urban areas are re-imagining spaces to accommodate these new living styles. Although some may argue that they are the very definition of the traditional community.
