4 Reasons People Are Buying Homes in 2021

According to many experts, the real estate market is expected to continue growing in 2021, and it’s largely driven by the lasting impact the pandemic is having on our lifestyles. As many of us spend extra time at home, we’re reevaluating what “home” means and what we may need in one going forward.

Here are 4 reasons people are reconsidering where they live and why they’re expecting to buy a home this year. 

1. Record-Low Mortgage Interest Rates

In 2020, the average interest rate for a 30-year fixed mortgage hit a record low 16 times, continuing to fall further below 3%. According to Freddie Mac, the average 30-year fixed interest rate today is 2.65%. Many wonder how low these rates will go and how long they’ll last. Len Keifer, Deputy Chief Economist for Freddie Macadvises:

“If you’ve found a home that fits your needs at a price you can afford, it might be better to act now rather than wait for future rate declines that may never come and a future that likely holds very tight inventory.”

This sense of urgency is driving many to buy this year.

2. Working from Home

Remote work is a new normal for many businesses, and it’s lasting longer than most expected. Many in the workforce today are discovering they don’t need to live close to the office anymore and they can get more for their money by moving a little further outside of the city limits. David Mele, President at Homes.comsays: 

“The surge in the work-from-home population has rewritten the playbook for many homebuying and rental decisions, from when and where to relocate, to what people are looking for in their next residence.”

The reality is, for some people, working remotely in their current home is challenging, especially when there may be other options available.

3. More Outdoor Space

Another new priority for homeowners is having more usable outdoor space. Being at home is driving those in some areas to seek less densely populated neighborhoods so they have more room to stretch their legs. In addition, those living in apartments and townhomes are often looking for extra square footage, both inside and out.

According to the State of Home Spending report by HomeAdvisorof the households surveyed, almost half reported spending 27% more on outdoor living over the past year. This is a trend that’s expected to grow in 2021 and beyond.

4. Avoiding Renovations

It’s recently come to light that many homeowners would also rather buy a new home than go through the process of fixing up the one they have. According to the 2020 Profile of Home Buyers and Sellers report from the National Association of Realtors (NAR), 44% of homebuyers purchased a new home to “avoid renovations or problems with the plumbing or electricity.”

Depending on what needs to be addressed, today’s high buyer demand may make it possible to skip some renovations before selling. Many of these homeowners have prioritized buying over renovating for convenience and potential cost savings.

Bottom Line

It’s clear that homeownership needs are changing. As a result, Americans are expected to move in record numbers this year. If you’re trying to decide if now is the right time to buy a home, let’s connect today to discuss your options.


Posted on January 18, 2021 at 7:00 am
Jennifer Angel | Posted in Buyer Tips, Buyers, Housing Market Updates |

What Does 2021 Have in Store for Home Values?

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Jennifer Angel | Posted in Buyer Tips, Buyers, Housing Market Updates |

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Jennifer Angel | Posted in Buyer Tips, Buyers, Seller Tips |

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Posted on December 25, 2020 at 7:00 am
Jennifer Angel | Posted in Buyer Tips, Buyers, Housing Market Updates |

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Once you’ve found the right home and applied for a mortgage, there are some key things to keep in mind before you close. You’re undoubtedly excited about the opportunity to decorate your new place, but before you make any large purchases, move your money around, or make any major life changes, consult your lender – someone who is qualified to tell you how your financial decisions may impact your home loan.

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Posted on December 24, 2020 at 7:00 am
Jennifer Angel | Posted in Buyer Tips, Housing Market Updates, Mortgage |

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Posted on December 18, 2020 at 7:00 am
Jennifer Angel | Posted in Buyer Tips, Housing Market Updates |

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Posted on December 14, 2020 at 7:00 am
Jennifer Angel | Posted in Buyer Tips, First-time Homebuyers, Housing Market Updates, Move-up Buyers, Seller Tips, Video |

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Jennifer Angel | Posted in Buyer Tips, Housing Market Updates, Seller Tips, Video |

With Home Values Surging, Is it Still Affordable to Buy Right Now?

Housing inventory is at an all-time low. Realtor.com just reported that there are 39% fewer homes for sale today than there were last year. At the same time, buyer demand remains strong. In a recent newsletter, research analyst Ivy Zelman explained: Continue reading


Posted on December 4, 2020 at 7:00 am
Jennifer Angel | Posted in Buyer Tips, Buyers, Housing Market Updates, Seller Tips |

5 Tips for Homebuyers Who Want to Make a Competitive Offer

Today’s real estate market has high buyer interest and low housing inventory. With so many buyers competing for a limited number of homes, it’s more important than ever to know the ins and outs of making a confident and competitive offer. Here are five keys to success for this important stage in the homebuying process.

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Posted on December 3, 2020 at 7:00 am
Jennifer Angel | Posted in Buyer Tips, Buyers, Housing Market Updates |