4 Trends You Should Expect When Buying a Home in 2021

Buying a home in 2021 looks a lot different than it did just a year ago. If you are ready to find your dream home, you should be aware of several real estate trends as you begin your search. Explore our guide to home buying trends in 2021 to help you prepare as you become one step closer to finding your new home base.

More Buyers Than Homes for Sale

Home inventory was low in 2020, and this will likely continue. A seller’s market occurs when there are more prospective buyers than homes for sale. This means flexibility is essential, and you must act quickly to secure the house you want. Here are a few tips to help you find a home in a seller’s market.

• Evaluate your wants. If you cannot find a home you want, be willing to give up some of your “must-haves.” You may be able to find a less expensive home and make upgrades over time.
• Expand your search. Is the location where you plan to buy too competitive? You might be surprised at what you can find in a less popular neighborhood. Work with a real estate agent familiar with the area to help you find a house that fits your budget and lifestyle.
• Get preapproved for a mortgage. This is a must in any market, but especially when there is such a limited home supply. Getting preapproved for a mortgage ahead of time puts you on the fast track to closing and accelerates the loan process once you make an offer.

Home Prices Will Increase

Experts predict home prices will go up in 2021, but not as fast as they did last year. It is important that you find out how much house you can afford if you plan to buy in this market — and commit to staying within that budgeted amount.

Keep in mind that your timing may impact how much you pay. Prices vary by season and are usually most expensive in June and July and least expensive in January and February. Feel confident about buying a house this year with these tips:

• Limit your house payment to no more than 25% of your monthly take-home pay. This includes property taxes, interest and principal. Do not forget to consider homeowner’s association (HOA) fees when preparing your monthly budget.
• Save at least 20% for a down payment. A 20% (or more) down payment helps you avoid private mortgage insurance (PMI). This is an extra fee added to your mortgage to protect the lender if you don’t make payments.

Low Interest Rates Are Here To Stay

Mortgage rates are expected to remain low in 2021 after falling to historic lows last year. The Federal Reserve cut interest rates in early March 2020 in response to the pandemic’s effect on the economy. Two weeks later, it made another emergency rate cut ? the lowest level since the Great Recession.

It is still important to shop around for a mortgage, though. The rate you are offered will often depend on the lender and your financial circumstances. Contact several lenders to compare mortgage rates and fees and choose the offer that makes the most sense for you.

Buyers Will Rely on Digital Tools

Purchasing a home became more challenging in 2020, but the industry quickly adapted to make the home buying process work in a socially distanced world. At Perry Homes, we adapted to this change by offering a wide variety of digital home shopping tools to allow prospective buyers to search for their dream home from the comfort of their own computer screen. With these great tools, you can explore interior room dimensions and even get a firsthand look at the premier, master-planned communities where we build.

Buying a home in 2021 may look a little different than it did in the past. There are several real estate trends you should keep in mind as you begin your new home search. Are you ready to get started? Explore and compare Perry Homes’ move-in ready properties in some of Texas’ most desirable communities to find your new home base.