Business & Investment

New year, new home? 🏡

New year, new home?

New year, new home?

The real estate industry was one of the few industries to withstand a pandemic. With indefinite quarantine, many new homebuyers find greater incentives to move and buy a home.

This surge in demand, mixed with the fact that supply is limited, has caused real estate prices to skyrocket. But this has not all pushed up the housing market. In fact, just this week, mortgage rates fell to their 16th low in 2020, further highlighting the benefits of entering the housing market. Also, according to Freddie Mac, a government agency that guarantees millions of mortgages, mortgage rates were around 3.74% last year, but only 2.66% this year. This reduction in mortgage payments has helped many families save money each month. But this is 2020, and things can change as the New Year comes. With so many homes already on sale, unsold homes are at the lowest level ever.

This could spell an interesting recipe for 2021, as Economics 101 teaches. When demand is high and supply is low, the price of goods rises. Despite these high prices, buyers may still be willing to pay, as Jason Gellos, a real estate agent at Community Choice Realty, explains. When buying a home, “some homebuyers have even abandoned home inspections.” Such strong demand and interest rates are projected to remain low despite rising prices, but will demand continue towards the New Year? What do you think?

I am not a financial adviser. My comments should not be taken as financial advice. There are risks associated with investing, so be sure to conduct a survey and analysis in advance.

 

 

 

 

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New year, new home? 🏡

https://invstr.com/new-year-new-house/ New year, new home? 🏡

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