If you’ve been paying attention to the real estate market or are interested in buying a home right now, then you are probably well aware that the housing market is on fire. Over the last year, with many of us spending more time at home due to the COVID-19 pandemic, the need for houses that cater to our specific needs and fit our desired lifestyles became increasingly important – thus driving more people towards the purchase of a new home.
Since then, the real estate market has seen tremendous increases in buying activity and has maintained much of that momentum well into 2021. But with the number of buyers on the rise, the competition for the limited inventory of homes has risen as well.
While it can be intimidating to enter a market with such stiff competition, here are a few reasons that now might still be a good time to buy a home.
Your Location Does Not Limit Your Life
Remote work changed everything and provided opportunities for many people to live and work from anywhere. For the first time in generations, where you live doesn’t have to be determined by the location of your office. With that in mind, consumers flocked to destinations that might have previously been off the table in terms of places to call home – such as Colorado. In fact, Colorado was the 4th most moved-to state in 2020. The incredible lifestyle-focused communities here have drawn people from across the country and across the globe to our state.
Mortgage Rates and are Still Working in Your Favor
Although mortgage rates are no longer lingering at the “record low” level that they were last year, but in comparison to previous years, they are still much lower than average. When the Federal Reserve dropped rates as a response to COVID-19, the average interest rate for a 30-year mortgage decreased to 2.72%, according to Freddie Mac. While the interest rates have since risen, they have remained relatively low affording buyers with the opportunity to qualify for larger loans.
What’s more, mortgage standards have loosened over the last year. According to Mortgage Reports, MBA’s Mortgage Credit Availability Index is currently at 124.6, which up from 120.9 six months ago. This increase indicates that mortgages are easier to obtain which is good news for for homebuyers.
Many May Have More Buying Power Now
Even with home prices appreciating, affordability is still surprisingly strong. Data from ATTOM Data Solutions suggests that historic affordability for homes in the U.S. improved during the first quarter of 2021 for about half of real estate markets. Thanks to rising average incomes and mortgage rates remaining low, consumers have more buying power to purchase a better home than they may have previously been able to afford.
With these factors in play, even with increased competition for homes on the real estate market, now might still be the right time for you to make a move. Allow the expert real estate brokers at LIV Sotheby’s International Realty to guide you towards achieving your lifestyle goals through real estate so that you can live a life you love. Begin your next chapter today by visiting livsothebysrealty.com.