Armand Candea Talks About the Top Trends in The America Real Estate Industry

The year 2020 was a challenging year in the housing industry. So much was happening across the country no one knew how it would impact the real estate trends in 2021. The pandemic disrupted the home sales in spring of 2020, but the market made an impressive rebound. There has been a surge in home sales leaving the sellers in a good place to make a nice profit off their home. Armand Candea, a top real estate investor, has learned new emerging trends for the year 2021.

Real Estate Trend #1- Slim Choices for Home Buyers

This is a tough trend to accept, but real estate inventory is at an incredible new low. If you are on a mission to buy a home, know that the best ones will get snatched up quickly. Does not leave much time to build a pros and cons list, if you want a good home in a slim market you need to sacrifice some of your wants- you might not find the “perfect” home, expand your search- look in other areas, and most important, get preapproved ASAP.

Real Estate Trend #2- Home Prices Are Still Rising

Home prices grew nearly 20% in the last year. This is great if you are looking to sell your home. However, for the buyers, if you are going to buy a home in this expensive market you need to make sure you can afford it. Commit to a budget, Limit your house payment to no more than 25% of your monthly take home pay. Save at least a 10–20% down payment. Choose a 15-year fixed-rate conventional mortgage.

Real Estate Trend #3- Mortgage Interest Rates Are Still Low

The mortgage interest rate has been at its lowest. The average rate for a 25-year fixed rate dropped 2.2% in January 2021. For buyers do not feel pressured to buy a home just cause the rates are at their lowest. For sellers if you do not plan to move anytime soon, this still may be to your advantage to re-finance your home to receive a lower rate than what you might have had before.

Real Estate Trend #4- Online Real Estate Services Are Growing

Services like Zillow allow you to browse homes with a click of a button. But did you know that online services are now offering to buy and sell your house for you? You can tell Zillow, for example, that you want to sell your home, they buy it from you and sell it for a higher price. They handle all the home processing stuff like inspections, repairs, and home showings, and then charge you the same as an agent, i.e., commission for selling costs — plus, some additional service fees. You can also use a virtual agent, this gives you partial services that are like working with an agent, but for a fraction of the cost. Digital technology, which includes mobile or online closings- many home transactions are using electronic signature apps and remote online notarizations to streamline the process.

Real Estate Trend #5- Risky Buying Options Are More Accessible

Rent to own, so if you want to buy but cannot afford it, you can rent it for a period and that money will go towards the payment when you decide you can afford to own it. The downside to this is if you later decide you do not want to buy the house of break the contract you lose out on that money.

Whether you are selling or buying a home, you can take advantage of the trends by working with a real estate agent. These professionals will help you in your future endeavors.

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Armand Candea

Armand Candea is a founding partner of Candea Development in Chicago and writes about real estate news.