Do I purchase a home in 2021 or do I wait? We have heard that that is the question many of you have been pondering recently. Americans are purchasing homes right now in record numbers. Since 2006, the most amount of homes were purchased in 2020, despite there being a low supply and home prices constantly increasing.
Many people have decided that now is the time to purchase a new home because mortgage rates are at a record low. Most research indicates that rates will likely start to rise and continue to rise significantly in the near future. Purchasing a home when rates are low give you more of an opportunity to your monthly payment being affordable and possibly having the ability to purchase a bigger home than you would have normally been able to. Right now, there are many different mortgage options as well. This means you can truly cherry pick with option would be the best for you.
With the good, always comes the bad. Right now there is low inventory on homes. This can become very frustrating to someone who is desperately in need of purchasing a new home. This low inventory market has created bidding wars! There is a lot of competition out there right now. Some people are able to compete by making cash offers. Most sellers will choose someone who has the ability to make a cash offer over someone who needs a loan. Most mortgage lenders have also made it a little more difficult to purchase a home during this time. This is due to the fact that the financial risk has increase significantly with many people losing their jobs during this tough time.
Some people have chosen to rent a home instead of purchasing a home since it is easy and more affordable. Keep in mind that this is not universal and it still might make more sense to purchase a home. If you are having a tough time deciding which to do, speak with your real estate agent of your concerns.