A house is probably the most expensive thing you’ll ever buy. Many people refer to…
Real estate trends are – as the name implies – always changing. Here are a few things we’re seeing in the market right now.
Real Estate Trend #1: Mortgage Rates are Incredibly Low
The most important thing to highlight is how low mortgage rates are right now. Homebuyers are getting great deals on their homes because they’re able to borrow at a low interest rate. Millions of Americans have been refinancing over the last few months to take advantage of these low rates.
Keep in mind that what seems like a small drop in your interest rate can lead to huge savings over the long term. If you save $200 a month and stay in the home for 30 years, that’s $200 x 12 x 30 = $72,000 saved over the lifetime of the loan! That’s money in your pocket that could’ve been allocated to other things like your retirement, a kid’s college fund or just enjoying life.
We do expect these rates to stay low for a while, but they won’t last forever. Take advantage now before they start going back up.
Real Estate Trend #2: People are Getting Out of Big Cities
It wasn’t long ago that we saw more people starting to move into big cities. There are certain amenities a big city offers that the suburbs or rural areas just can’t, so it makes sense.
COVID has flipped that trend on its head. Cities are seen as less safe since you have so many people living in a small area. This has a lot of people moving out of the big city where they won’t be in contact with as many people. The suburbs are the main place people are going, although some are venturing even further out into rural areas.
If you currently live outside of the city and are trying to sell or rent your home, this can be seen as a good thing. You may be able to find a buyer or tenant more easily than you could a year ago. That said, there are also a lot of apartments being built in the suburbs that may end up drawing these new neighbors.
Real Estate Trend #3: The Biggest Segment of Homebuyers is Millennials
We’ve all heard a lot about millennials over the last decade. Born between 1981 and 1996, this age group now makes up a large portion of the workforce. Aged between 39 and 23, most of them have been out of school for a few years and settled into their careers. As they’ve earned more money and saved up, it’s positioned them to finally be able to buy homes.
Starter homes are a bit different than they used to be. These days many starter homes are often townhomes since they tend to be less expensive than a detached single family house, plus they require less maintenance. Obviously millennials aren’t restricted to these types of homes but they are gaining in popularity.
There are other real estate trends right now, but the most intriguing to us is how low mortgage rates are. We encourage everyone we know to take advantage of these rates before they’re gone! Give us a call at (844) 824-5626 and we’ll see what we can do for you.