2021 HOUSING MARKET
Wow! If you moved in 2020, Congratulations and God Bless You!
Nothing slowed down at all and I am in the Midwest market. Mid-Missouri to be exact. AVG sales price range of $175,000 (2019) that sky rocketed to $191,000 (2020) in a year.
The over borrowing and overspending made me super nervous. It was chaos! Houses selling within hours. It wasn't like the banks were giving away loans. Buyers still had to provide income taxes and credit scores. Interest rates being at a historic low definitely helped. We finished overall averaging 3% interest rate with some online mortgage bankers offering 1.99% 30 Year fixed rate. INSANE!!! And now in 2021, the average is Below 3%.
Yes, we are in a “sellers market.” Extremely low housing inventory and multiple buyers for each house. Yes, Sellers got over asking price. Yes, sellers were able to move to another house, even with low inventory. No, it has not slowed down.
2021 has arrived. What happens now? I have been talking to loan officers if they have any idea of this market slowing down or a “bubble burst” coming soon? It seems like rates will be staying historically low throughout this year. But as we learned in 2020, the entire world can change overnight. So who the heck knows?
What should you do if you are interested in investing in real estate in 2021?
If you are considering moving, be prepared to move quickly, be prepared for less options, be prepared to overpay. Sounds exciting right, but millions of millions of people did this last year.
If you own a home and haven't yet refinanced, DO IT NOW! If you can reduce your rate by 1%, you will see the difference in mortgage payments and cut off YEARS and hundreds of thousands of dollars. For example, My wife and I refinanced from 4.75% rate to 3.125%. That saved us over $200 a month, over $2,400 annually. We will be paying the same mortgage payment as before which equals an extra mortgage payment going directly to principle every year. It adds up beautifully.
Real estate is a huge investment tool and has always been a dream of mine. There really is no place like home to store all of our junk that is being delivered daily to our homes.
If you are interested in Investment Property, that article is in the works.
Thanks for reading. You can find me on Instagram @gsellsmo or visit my real estate brokerage at downtownrealtyJCMO.com.