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 Tanja Odzak-Goppold, with Keller Williams Realty. Remember Corelogic bases their predictions on public data and facts, and being in the industry for years, I heavily rely on their data. He believes that the low interest rates will continue to entice buyers to want to enter the market. It’s an easier transition to enter the housing market, because the principal and interest rate is much lower today than they were a year ago, about 1% lower, and that lowers a buyers monthly payment significantly. So much so that oftentimes mortgages are lower than what a monthly payment for a rental would be. And remember, they also have the benefit of writing off some of the mortgage interest. Buyers also have more monthly cash flow because mortgage rates are lower and because of the interest write off. However, the negative part for buyers is that with prices going up, initially when they purchase a home they are also going to need more money for the down payment, closing costs, and monthly reserve, so that will cause a bit of stress. Once they get in the home it’s great, but initially getting into the home may be a bit more of an initial financial challenge. I hope this was helpful.
Check out my YouTube channel for all 4 of the Real Estate predictions for 2021, I’m Tanja Odzak-Goppold, Reach out any time for anything as I’m always here to help. PUTTING PEOPLE BEFORE PROFIT