A Real Estate Update for May 2021. It’s Buying Season!

Increasing Mortgage Rates
It appears, depending on how the economic recovery progresses, that mortgage rates could continue to increase. Earlier in the year, rates were holding under 3%, but those rates have steadily increased over the past several weeks. As more and more Americans are vaccinated, it’s expected that economic recovery will continue, and this will likely contribute to an upward movement in mortgage rates. Keep this in mind if you’re thinking of buying this summer.

Inventories Could Increase
Many home shoppers felt discouraged by the lack of inventory this past year. It was difficult to find available properties, and when something went on the market, it was often scooped up in just days.

Some analysts are expecting to see increased inventory this year. As more people become vaccinated and a general sense of stability returns, home sellers who were deterred from making a move in 2020 will be more likely to list their properties.

Millennial Movement
Another trend that could continue influencing the real estate market this spring and beyond is an increase in millennial buyers. Nearly five million millennials are set to turn 30 this year, and they now comprise the biggest segment of home buyers.

Millenials are starting to buy their first homes, and they will likely drive the market throughout 2021. A recent survey from the National Association of Home Builders found that 27% of millennial respondents planned to buy a home in the next 12 months, up from 19% the year before.

The Online Trends Are Growing
Online real estate services grew in functionality and popularity this past year.

3D home tours, virtual agent/broker teleconferencing, and online closings aided by tools like DocuSign are all ways that technology is facilitating a simpler home selling or buying experience. Regardless of the state of the pandemic, the convenience afforded by online real estate technology is here to stay.