It goes without saying that 2020 was a year for the books; the appearance of the COVID-19 pandemic, statewide shutdowns, massive protests and riots, intense political agendas and debates, and so much more. From an outsiders perspective it would appear as if not much good came from 2020, but the housing market showed all time interest rate lows and the market became a sellers market with limited inventory. With the new year in full swing, the question that many are asking is will the housing market continue its momentum. Analysts are suggesting that in 2021 the housing market will be even more aggressive than in 2020. So what does this mean for the average Joe or Josephine? Here are a few ways how the housing market for the new year could effect you...
1. Listing/Selling your home could deem profitable in a sellers market. Most homes are selling quickly with multiple offers if they are priced right. Sellers are getting nice returns on their investments.
2. Refinancing could save you thousands in interest paid. For folks who purchased before the housing market crashed in 2008ish, interest rates were anywhere from 7% to 12% based on your credit scores and it was normal. With many interest rates averaging less than 3.5% finding options to save more money may benefit your purses and wallets over time. Fun Fact: you don't have to start over at 30 years. A 15 year refi may save you money and shave time off of your term. Also, making one extra payment per year (which will be easy with all the money you're saving) helps you pay off your home much faster.
1. Buying now may give you more purchasing power. Lower interest rates means you may be able to afford more house. Today's generation isn't purchasing condos first and single family homes later; they are planning for their first homes to be homes they can grow in for a while. More money to buy assists with this
2. Purchasing an investment property as your main residence could be the key to building future wealth. For those single non homeowners, purchasing a duplex and living in one side while renting the other side out could easily turn into your first investment property. Allow your renter to help pay your mortgage and later rent both sides out for passive income.
In essence, there are so many possibilities in the new year that homeowners and non homeowners can benefit from. Contact your trusted real estate or mortgage professional so that you can take advantage of these opportunities. In a time where being home is touted, investing in one that you're happy with is the end goal.
**Photography: Pixels Media Co. -- www.pixelsmediaco.com