The second Real Estate Market Prediction for the U.S. in 2021 from CoreLogic’s Chief Economist Frank Nothaft is that there will be more first-time home buyers entering the market.
Hi, I’m Sherri Echols, Broker Associate with RE/MAX Bryan – College Station. Remember Corelogic bases their predictions on public data and facts, and being in the industry for 11 years, I heavily rely on their data. Mr. Nothaft 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 interest rate is much lower today than they were a year ago, about 1% lower, and that lowers a buyer’s monthly payment significantly. So much so that oftentimes a house payment is less than the cost of the rent. And remember, homeowners also have the benefit of writing off some of the mortgage interest.
The lower payment and the tax write-off work together to increase the homeowner’s available discretionary money. With the low rates, we have more buyers than normal, which creates the issue of low inventory. This means a seller’s market, which means prices will go up a little or a lot depending on what you are looking for. With careful financial planning, a discussion with a trusted lender to find the best loan for you, and a great agent to help you find a fabulous home within your means, anyone who qualifies for a mortgage can have a successful transaction.
I hope this was helpful. Be sure to search our YouTube channel, Sherri Echols Realtor, and subscribe for all 4 Real Estate predictions for 2021. Reach out to us at any time for anything as we are always here to help. I’m your Community Market Leader Sherri Echols, a helping hand for a happy home.