2020 is a wild ride. We could only guess how the market would react, so as we near the end of the year, with the pandemic going strong, we can reflect on the progress we've made so far. There are two trends, experts are recognizing, that will continue into 2021.
First-Time Buyers Are Critical
Technology saved us. It facilitated the continuation of business even if it was far from "usual." The mortgage rate dropping then inspired small-time investors and billionaires alike to start the cash-grab-- or, land grab. We saw that first-time homebuyers bolstered the market on the lower-priced side, and made up for about a third of the total sales. We're predicting we'll see the same trend in 2021. We're seeing, thanks to technology, people outside of the industry are learning and making more informed decisions.
As for Realtors, tech opens up many doors. Virtual tours are legitimate options and aren't likely to dissuade buyers any more than an in-person tour would, depending on how well their Realtor handles video calls versus real tours.
Mortgage Expertise Will Be What Closes Deals
We're going to see more special mortgage deals come up. With the response to 0% interest rates, the market responded in telling ways. Some people closed themselves off because they are risk-averse, but what we saw was high demand and low supply.
With first or second-time buyers, money is usually a key deciding factor. If they have more opportunities to take risks with high rewards, we expect they're likely to take them. It's possible that surviving the pandemic has people feeling confident in their competence; we love to see it. Some young professionals nearing the end of their training for high-paying roles are even getting approved for "professional mortgages" which account for a higher income in a few months time. Imagine a broke college student securing a multimillion dollar home because in a year they can afford it, if they commit to succeeding in their endeavors, that is.
We know interest rates will stay low for at least another year, so we predict we'll see more low-range buyers in the 2021 who bet on themselves to win. Buying power is increased thanks to low rates and utilizable deals such as these mortgages, FHA loans, etc..
We're excited for the future.