If the 2021 Real Estate market were a card game, it would be stacked with wildcards!
The global pandemic has caused seismic shifts in the market, creating a high demand for more square footage, thus creating a strong desire for larger suburban homes.
Interest rates are low, but so is inventory, and there's been an unexpected influx in new-home buyers getting into the market recently.
When we look at all things combined, there are some surprising changes excepted in the 2021 real estate market, here are a few of this year's predictions:
Increase of New-Home Buyers
With interest rates at an extreme low, this is an ideal time for first-time buyers to get into the real estate market. One of the biggest fears many new buyers have is finding themselves 'mortgage poor' but with today's low-interest rates, many buyers will find their mortgage payments equal to or possibly even lower than their current rental rates.
More Competitive Offers
Properties will likely sell faster than ever before. With such a low inventory, the opportunity for buyers to make an offer will need to done quickly and with little or no conditions. A seller is going to be much more inclined to accept a cash offer over an offer than includes mortgage, inspection, and other clauses. Also be prepared to offer over asking price, with plenty of buyers and not many homes on the market, buyers are likely to find themselves offering higher prices for their offers to even be considered.
Prices may hit a new high
We are, without a doubt, in a seller's market. The low inventory and the high number of buyers will push the home prices up as the need to buy becomes stronger. This is not all bad news, while you may be paying over asking price and a larger deposit now, the low-interest rates mean that you will be paying less for the home over the term of the mortgage and will keep your payments affordable.
Square footage is key
With more and more people working from home, square footage is top of the list. Our needs for a simple home have changed to a home with space for home offices and home learning for children and students. Working from the dining room table was fine for a few months, but with the ongoing pandemic and a strong turn to a work-from-home culture, buyers are looking to have the extra SF to set up a proper ongoing workspace.
Say hello to the suburbs
Again, due to the pandemic and our new work-from-home lifestyles, buyers are looking for that extra space which they may not find in the city. Think large yards with extended living space, home gardens, and extra space for hobbies.
Most of us couldn't wait to move out of our parent's house, however, with the increased price of homes and new-home buyers being a few years older than recent years, we are seeing a turn towards intergenerational living. You may begin to see young couples looking to purchase a home with a mortgage helper, with their parents, or a home that can be easily renovated into two separate living spaces and the entire family living in the home together.
2021 will bring us many unexpected turns and new real estate trends as we learn to adjust to living amidst a global pandemic, increased home prices, and low inventory.
Please keep in mind these trends are nationally based across Canada and therefore may not be seen as widely on Vancouver Island.