No doubt, a constant theme throughout the COVID-19 pandemic has been the housing market which has continued to gain steam. As we move into 2021, this skyrocket in sales and refinances is most likely going to continue.

Here are several reasons why:

  1. The pandemic has changed the way people buy homes. More buyers have turned to the internet due to present homeowners quarantining while trying to maintain social distancing.
  2. People are waiting to list their homes until the pandemic passes or for a time where it is safer to have potential buyers walk through their homes.
  3. Working from home has become a new way of how most Americans go about their day. Home offices have popped up all over the country. Due to this major change, people no longer need to commute to jobs or transfer/move to new locations.
  4. The price of lumber has risen substantially in 2020, creating a surge in new construction building costs. As the price of lumber continues to rise, we will still see real estate continue to rise along with it.
  5. Mortgage interest rates have remained low due to the Fed buying mortgage-backed securities in the billions each day. The Fed has said it will continue its asset purchase program until substantial improvement is seen in the economy. Another area to watch is inflation. If this rises, the time to buy a home is now, as buyers have the opportunity to lock in the current low rates.

Although we are in very different times, the housing market remains strong, and experts predict this trend will continue into 2021.

Source: Mortgage Market Guide

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