3 Reasons to Buy a Home in 2021 [ Video ]
Inventory may open up, making homes cheaper
Back in January, the median U.S. home price was $266,200. As of September, it was $311,800. That's clearly a sizable jump, and it largely boils down to a huge lack of inventory.
Many sellers have held off on listing their homes during the coronavirus pandemic, and it's created a shortage of available properties to buy. In fact, housing inventory is down 32.5% this year compared to 2019, and the basic laws of supply and demand indicate that when a commodity, such as a home, is in short supply, demand rises, and so do prices.
Things may look different in 2021, though. If things improve on the coronavirus front, sellers may be more willing to list their homes. Also, if the economic crisis improves, more sellers might want to shake things up and move. Right now, a lot of people are no doubt keeping things status quo to avoid upheaval when life is already so unsettled. Once the housing inventory picks up, prices should naturally start to fall.
Mortgage Rates Are Still Low
Mortgage rates are still low as we move into 2021. This could change with the tax increase and the cancellation of reforms. As the nation feels inflation so goes the mortgage rates.
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