If you are thinking about purchasing a home in Florida in 2021, you might be wondering what to expect from the housing market, mortgage rates, and more. Let’s go over a few predictions for what it will be like to shop for a home this year. Keep in mind that these are just predictions, not guarantees. We live in unpredictable times.
Shopping for a Home in Florida
- Shopping for a home in 2021 will be more like it was in 2020 than how it was in the past. Going into 2021, right now, the world much more closely resembles the world of 2020 than that of 2019 or previous years. With the vaccines going out, it seems likely that some aspects of the previous economy will start to be restored this year. But it will take many months before everybody has been vaccinated. There are also new strains of coronavirus to deal with, and a lot of economic losses to catch up on. So, we can still expect social distancing and other quarantine and isolation protocols to remain in effect. That means that virtual showings and other adaptations the real estate and mortgage industries made last year will remain in place this year.
- Buying a home (or selling one) should be smoother this year than last. The good news is that even though shopping for a home in 2021 will resemble shopping for a home in 2020, the process will probably be easier. How so? It is now more established. Mortgage brokers, real estate agents, home sellers, and others involved with the process now know the drill. So, it should be faster and more predictable.
- Availability of homes for sale may be strong later in the year. It seems possible that there will be an influx of homes on the market this year. Why? Because as the economy warms up and the vaccines are distributed, more sellers will enter the market. Plus, more homes will be built. The reality is, a lot of surprising conveniences have come out of the need to adapt during the pandemic. Sellers like virtual tours and other changes that have streamlined the work involved in home sales. So, once the negative aspects of the situation fall away, some of these adaptations are likely to remain, and encourage sellers to enter the market. Just keep in mind that until later in the year, it is likely that the inventory of homes for sale in Florida and throughout the US will likely be restrained. It may take you longer to find a home you like than it would have in a previous year.
- Rates might remain low, making for good investment opportunities. Are you thinking about investing in a vacation home, second home, or rental property in Florida? This may be a good year to do it—especially if you are from abroad. Daryl Fairweather, chief economist at Redfin says, “though the U.S. may be able to vaccinate most of its citizens by the end of 2021, many countries will struggle to distribute vaccines. Thus, the global economic recovery could take much longer, which would make U.S. mortgage-backed securities attractive to international investors, keeping mortgage rates low.” Those low mortgage rates also make for great opportunities potentially for American real estate investors as well.
- There could be new assistance programs to make home buying more affordable. Since there has been a change in administration, it is possible that to bolster the housing market and help Americans to enjoy the benefits of owning a home, the government will create new programs for down payment assistance and more. If you are concerned about being able to afford a home but are still in the market for one in 2021, you will want to check into not just existing programs, but also any new programs that may be on the horizon.
- An influx to some cities in FL could lead to competition. Jarred Kessler, CEO and co-founder of EasyKnock, writes, “As companies announce plans to allow employees to permanently work remotely, high-tax cities will continue to see a talent drain as people relocate in search of cities with a lower cost of living. Second-tier cities like Austin, Charlotte and Tampa will experience a residential building boom.” That means that not only will we be contending with low inventory through much of 2021, but there may be more homebuyers competing for hot properties in communities like Tampa.
Recommendations for Shopping for a Home in 2021
Given everything we have just gone over, here are a few quick tips for shopping for a home this year:
- Be ready to be aggressive with your offers.
- Get your credit score, DTI ratio, and other financial metrics in the best shape you can.
- Be prepared for a home search to be longer and more involved than it might have been in the past.
- Work with a mortgage broker that can help you capitalize on the low rates available right now and close fast on a new home.
We Can Help You Move into a Home With an Affordable Mortgage in Florida
Whether you want to buy a home in Cooper City, Pembroke Pines, Plantation, Hollywood, Fort Lauderdale, or anywhere else in FL, we can help you make it happen. Please give us a call at 954-840-8811 to schedule your consultation.