Four predictions for the real estate market in the U.S. in 2021 from CoreLogic’s chief economist.
The second real estate market prediction for the U.S. in 2021 from CoreLogic’s chief economist is that there will be more first-time home buyers entering the market.
Hi, I’m Jennifer Prestwich, the Prestwich Group at Madison & Company Properties. Remember, CoreLogic bases their predictions on public data and facts, and being in this industry for 13 years, I rely on their data.
They believe that the low interest rates will continue to entice buyers to wanna enter the market. It’s an easier transition to enter the market because the interest rate is much lower today than it was about a year ago. Actually, it’s even about 1% lower. And that lowers a buyer’s monthly payment significantly. So much so that oftentimes mortgages are lower than what monthly payment would be for a rental. And remember they also have the benefit of writing off some of the mortgage interest. Buyers also have more monthly cashflow because mortgage rates are lower and because of the interest write-off.
However, the negative part for buyers is that with prices going up, they’re also going to need more money for the down payment, closing costs, and a monthly reserve. So that’ll cause a little bit of stress.
Once they get in the home, it’s great, but initially getting into the home may be a bit more of a financial challenge. I hope this was helpful.
Be sure to check out my YouTube channel for all four of the real estate predictions for 2021. I’m Jennifer Prestwich, the Prestwich Group at Madison & Company Properties. Remember, life is too short not to love where you live. I’m out here livin’ the Denburbs life, and I want to help you do it, too.