While that sense of preparation is never a bad thing, it may not always be well-founded. As the housing market continues to appreciate after the trials of 2020, sellers should stay on their toes. However, they may not need to!
2020’s Impact on the Housing Market
Before the pandemic, the demand for housing was on the rise. A combination of lower-than-average mortgage rates and millennials’ move towards permanent property issued in a seller’s market. When coupled with the anxiety brought about by the pandemic, that shift has now led to one of the best seller’s years in recent history.
A Housing Bubble or a Seller’s Market?
Interest rates on today’s mortgages remain low, though potential buyers have seen a slight increase in payment rates over the past few months. Housing prices, however, are at an all-time high. They, unlike interest rates, don’t seem to be shifting. Instead, the value of most private properties continues to appreciate.
Under normal circumstances, this kind of rapid upward trend would suggest that the housing market is soon to bubble. Not so, in this case. The demand for housing has remained consistent as millennials prize permanent residencies over stock options. Sellers, then, can continue to benefit from a plethora of buyer options while listing the price they believe best suits一if not exceeds一the value of their property.
Predictions for the Future
There may come the point where the housing market starts to tilt back into a buyer’s favor. Whether or not that will be soon, however, is a matter of debate. Many experts anticipate that housing costs will continue to appreciate and grow. There may come the point, however, when that boom begins to drive prices back down again.
However, for the next year or so, any buyers looking for a new property are encouraged to take the deals they can find. It’s anticipated that the cost of residential land will increase, meaning that future homeowners will find better deals now than they will even six months down the line.
Meet with an Experienced Realtor to Discuss Today’s Market
Tackling the challenges of a seller’s market isn’t an easy process for new investors. Even experienced sellers may be facing unique challenges considering the complexity of this recent housing boom. With a little bit of help, all parties can increase the value of their preferred properties and make the most of the ever-increasing demand for permanent private property.
About Andrew Shader
Andrew Shader is an entrepreneur and a successful real estate developer and investor in Fort Lauderdale, Florida. He got his Business Management and Marketing degree from Florida State University. After spending years in the insurance industry, Mr. Shader decided to shift his focus to real estate. Andrew specializes in value-added properties and boosting property value through investment.