What should First Time Homebuyers expect from the 2021 Real Estate Market?
The second 2021 US Real Estate Market prediction from CoreLogic’s Chief Economist, Frank Nothaft is that there will be more first-time home buyers entering the market. Hi, I’m Lynea Carver with the Carver Home Team and John L Scott Real Estate. As I said in the first video of this series, CoreLogic bases their predictions on public data and facts, and being in the industry for over a decade, I heavily rely on their data.
He believes that the low interest rates will continue to entice buyers to want to enter the market. It’s an easier transition to enter the housing market, because the principal and interest rate is much lower today than they were a year ago. Even though interest rates took a slight climb recently, they are still about 1% lower, and that lowers a buyer’s monthly payment significantly. It makes so much of a difference that oftentimes mortgages are lower than what a monthly payment for a rental would be. An added bonus is that they also have the benefit of writing off some of the mortgage interest.
Also, because mortgage rates are lower and the interest write off benefit, buyers have more monthly cash flow. The downside for buyers is that with prices going up, they are going to need more money for the down payment, closing costs, and monthly reserve, so that could cause a bit of stress. Once they get in the home it generally works out, but initially getting into the home may be a bit more of a financial challenge. I hope this was helpful.
Be sure to search our YouTube channel Lynea Carver for all 4 of the Real Estate predictions for 2021, I’m Lynea Carver with the Carver Home Team. Reach out to us at any time for any questions. We’re here to help. And remember, whether you’re buying a home or selling a home, it all starts with a dream. Let’s dream together!