What should you expect in 2021?
It seems that 2020 has been a different type of year for everyone. This would include everyone in the Real Estate industry, loan industry, and all related fields. We have seen some pretty interesting situations from the market this year. It seems that this will continue to be the case in 2021 for everyone in the industry. Besides fighting the COVID-19 pandemic and all that has been created by it. It seems that the market will continue to offer some success for some and some struggles for others.
The market right now reflects what most call a "Sellers" market in most markets around the country. With some areas of the country having record double digit increases in percentage of sales prices on a home. This means that some areas are experiencing above asking price for homes on the market. This can result in multiple offer situations and some highest and best offers for anyone looking to purchase in a tough market. These buyers are ready to move on the purchase of a new home and have the means to do so. This would mean they are potentially cash buyers and or well qualified with a lender. With the inventory being at a record low, this complicates things for anyone looking to purchase. So, if you are considering selling your home this may be the time to consider doing just that. Placing your home on the market in the current market may be the biggest return you can get in quite a few years the market has seen in the past few years.
It seems that the market is suggesting that the market will continue into 2021 to be a different situation in past years. Beyond the lack if inventory and the number of people that are dealing with COVID-19 and the fall out of the pandemic. The market was changed in 2020 due to the pandemic and the market was held up from shutdowns and restrictions that continue to plague the country. For Buyers the market has been difficult just besides the lack of inventory available in most markets. People have discovered from the COVID situation that they don't necessary have to be close to work or near their employer. Remote situations and the video conference situations have changed the way people are conducting their business or work from home. This offers a new perspective on homeowners and what they have found out they can or cannot do. With remote working situations people are changing their way of home buying and needs. For some people the COVID situation has brought the importance of being close to family, and parents that may need to be cared for. Not being able to have contact or even being able to reach a family member or loved one has changed the mindset of homeowners. Some have decided that more open spaces are where they want to be in the future, so larger parcels with acreage attract them outside of the neighborhood. Large parcels with double digit acreage have been surging since the pandemic started. Some of these types of property are being purchased site-unseen, which is a total different topic we don't need to touch on right now.
The election has played a part in the market and has seemed to slow things down some leading up to the election. From the results of the election the market for home "buyers" is looking good for 2021. One of the proposed economic stimulus programs has been directed for first time home buyers. This program is stated to be a little different than past programs offered by the government loan programs. Full details are not complete at this time but the general information is a $15,000.00 tax credit for any first time home buyer. What a buyer will need to do to qualify at this time is unknown? But with the market situation and low inventory it will be a challenge for agents and buyers.
For anyone in this "first time buyer" situation you need to be prepared to have things in order prior to searching for a home. If you have experienced any kind of shortfall to being effected by COVID -19 situation? This would include layoff, furlough, or job loss in 2020. You need to be ready to get things in order. Any lender will ask for w2 tax forms, along with proof of employment and income for sure. If you have experienced any type of loan default or bankruptcy, you may not be able to recover from this for a number of years. Which means you will not be eligible from typical lender to qualify for a loan. If you are fortunate enough to be able to see the light at the end of the tunnel. This would be the time to get your money in order and get any outstanding credit cards or other items caught up or paid off. COVID has placed a lot of people in debt that they have occurred over 2020. Getting your finances in order now will get you ready for 2021 and getting you into the home you want. With the COVID -19 situation pre-approval will continue to be necessary for anyone looking to purchase in 2021.
Some simple suggestions for anyone looking to purchase in 2021. Get any outstanding credit cards paid off or at least caught up if behind in payments. Don't take on any big ticket items, this would include furniture or vehicles. With Christmas just around the corner, don't get tied up 6 months of bills for your Christmas purchases. Consider your down payment amount, the more you save now the more you will have to place as a down payment. Just getting started with the home buying process is hard enough, but don't forget the home inspections. Home inspections are done mostly for the buyer and buyer information only. A good Realtor/Agent will suggest that you complete home inspections. These have to be paid for when completed weather you continue to purchase the home or not? If the contract is contingent upon inspections and you decide to not continue with purchase. You will still owe for any inspections completed on a property. Home inspections can start at $500.00 and add up from there for each one completed.
If you are read to make home ownership a part of 2021? Be prepared and be ready anything that may hinder the process of buying a home in todays market. A full time Realtor/Salesperson is a must for buyer let me put the power of a National Firm to work for you!
Keith S Shaver
Thomas H Johnson, Broker of Record
174 Northridge Drive
Lewisburg WV 24901