Did you know? According to a recent CoreLogic report, U.S. home price appreciation outpaced 2019 by approximately 50%. As a matter of fact, the U.S. Home Price Index was up 9.2% in December from a year earlier. This equates to the largest annual gain in 6 years. Heading into the pandemic-induced lockdowns, the future of the real estate market was highly uncertain. Nonetheless, the real estate market was one of the few bright spots in the U.S. economy for 2020. With April being the only exception due to the strict lockdowns, the real estate market soared throughout the year and was bolstered by low inventory and historically low interest rates.
2021 and beyond
Typically during the winter months we see a slow down in the number of real estate transactions. With this said, the inventory constraints have caused the high buyer demand to remain during these months. Relative to prior winter months, we still expect sales to remain elevated. Although home prices should continue to see gains during 2021, they should be more modest than those seen in 2020.
The bright side for buyers is that buying power continues to remain at all-time highs due to the historically low mortgage interest rates. If you are considering a home purchase in 2021 and will be obtaining financing, it is highly recommended to complete the pre-approval process in advance. This way you will be ready to act quickly when a property is identified for purchase. The market will continue to remain competitive due to the low inventory of homes for sale. Therefore, you will want to be prepared to make swift decisions.
Do you need help with developing a strategy for your home search in South Florida? Contact Live South Florida Realty, Inc. today! We are a knowledgeable and experienced full-service real estate brokerage that is ready to assist you today.