Whether you’re looking to buy or sell a home in Albuquerque it’s good to know what to expect in real estate trends. The spring months are always exciting and interesting in the real estate industry, so what are analysts expecting us to see in the near future?
Increasing Mortgage Rates
It appears that mortgage rates could continue to rise, depending on how well the economy recovers. Rates have been rising for weeks, whereas earlier in the year, they were holding under 3%. With the expectation that rates will continue to tick upward throughout the year, borrowers are advised to lock in low rates now.
According to Fannie Mae, 30-year fixed-rate mortgages are expected to average 3.1% through the spring months, while they were averaging 2.9% in the first quarter of the year.
Many economists agree that as more Americans are immunized, there will be a larger economic recovery, thus a rise in mortgage rates.
Even with the slowdown compared to the hot market that has combusted the past year, there’s no major crash forecast. Prices could slow down a bit, and new homes might get built a bit more.
So that means if you plan to buy a home in Albuquerque, now is the time to act, despite stiff buyer competition.
Inventories Could Increase
The past year has been frustrating for home buyers and would-be homebuyers. It has been near impossible to find homes available, and when something comes on the market, it will often sell within just a few days or just an hour.
Today, however, more people have been vaccinated, so there will be less fear of catching COVID-19 from people coming into their home.
Although inventory levels are expected to rise, there could remain a shortage of options, particularly in some markets.
More than five million millennials will turn 30 on this year, and they are now the biggest segment of buyers in the real estate market. In 2018, millennial homeownership was at record lows, but that looks like it may be changing.
Around 86% of younger millennials and 52% of older ones are buying first homes, and some are buying luxury properties that are well beyond what you think of as a starter home.
Millennials will likely continue to dominate the market in 2021. According to a survey from the National Association of Homebuilders in the fourth quarter of 2020, 27% of millennial respondents intend to buy a home in the next 12 months, a significant jump from only 19% previously.
The Online Trends Are Growing
The popularity of real estate services online continues to grow, and that will probably not change regardless of the pandemic’s state.
It has become increasingly possible to buy or sell a home without leaving the comfort of your current location. Virtual showings, the use of fully virtual agents, or mobile or online closings are just a few ways technology made real estate easier this past year.
What does all this mean for home buyers and sellers in Albuquerque? Whether you plan to buy or sell your home, now is the time to act. For home buyers, you’ll want to get your mortgage rates locked in before they rise any further. For home sellers, there’s never been a better time to sell your home, with stiff buyer demand raising prices and making homes sell fast. Talk to Sandi Pressley and her team soon to buy or sell a home in Albuquerque today!