The year 2020 brought a lot of uncertainty to real estate markets around the world. With restrictions starting to ease and consumer confidence and excitement on a sharp rise, here are 4 reasons to not hesitate when buying a house in Salt Lake in 2021.
Low Interest Rates
Due to the financial strain on individuals and markets across the country, the Federal Reserve took the decisive action to lower interest rates substantially in 2020.
What this means for the average homebuyer or homeowner is lower mortgage interest rates when applying for a new loan or when refinancing an existing loan. Since interest rates are in part established to match the ebb and flow of the financial markets, you could find yourself in a situation where the opportunity to lock in these lower interest rates may not exist a year from now.
Striking while the iron is hot will help you secure a lower interest rate and end up saving you a substantial amount of money over the course of your home loan.
Beat the Rush
The pandemic brought most aspects of normal life to a temporary standstill, and local real estate markets were not immune to this fallout.
There were a lot of potential buyers and sellers who both decided it wasn’t a great time to uproot themselves and risk exposure to a lot of unknown circumstances this time a year ago. Putting off their plans to buy or sell a home means sitting and waiting until they’re comfortable, and with the return of spring and summer comes a return for the high season for home sales.
Because of both easing restrictions and the return of warmer weather, there is likely to be a rush of those buyers and sellers who sat out 2020 hitting the listings in 2021.
Fully expect the demand for homes to outstrip the supply, and you want to get ahead of the tidal wave of buyers.
Continued Economic Improvement
It’s no secret that 2020 threw everyone a big curveball, and a lot of people withstood serious emotional and financial hardship that lasted for months.
Now that employment numbers and economic indicators are looking up, be prepared for more potential buyers to be on the lookout for a great deal on a new home. This could mean that you need to be ready to jump when buying a house in Salt Lake.
Those who received stimulus checks and were doing their best to plan ahead will have saved that additional money in preparation for making a down payment or to sweeten the deal during negotiations.
Homeowners Acquired Further Equity
Since there were so many current homeowners that decided 2020 wasn’t a great time to put their properties up for sale, they continued to make mortgage payments and complete some renovation projects.
One trend we saw happening in the early and mid parts of 2020 was a continued demand for home improvement goods from large chains across the country. This means the owners that were stuck at home took advantage of the extra time on their hands to update their homes as they saw fit.
A reinvestment of time and energy in their current homes means they had more time to build up home equity, which could translate to some increased flexibility in negotiation. Asking prices will likely start high, but a motivated homeowner will know giving a little on the price could be the golden ticket to sealing a deal.
The one note to keep in mind here is that with low inventory, you’re more likely to encounter other buyers ready and willing to enter a bidding war, so hit the listings now to save yourself the trouble.