The new year is finally here. As we begin 2021, I’m excited to share the latest market stats, my predictions for 2021, and how to capitalize on what’s going on right now in our real estate market.
At the end of 2020, we had 49% fewer homes on the market than we did at the end of 2019. We also had 49% more homes go into escrow. This has sped up home sales while simultaneously raising prices.
Looking forward to 2021, I predict a continued increase in prices. Our supply of homes remains very small while demand remains very high due to historically low interest rates. More and more people working remotely has also increased demand for homes because homebuyers are realizing they can live anywhere they want.
It doesn’t take many people from San Francisco or Los Angeles to migrate here to affect and change what happens here in San Luis Obispo. This trend will bolster our market. The great news is that affordability will remain strong because of the low rates.
It’s a great time to buy, sell, or refinance your mortgage.
How can you take advantage of these trends? For starters, you could buy a home with some of the lowest interest rates that we’ve ever seen in this country. You could also sell your property for an all-time high price. If you need to buy and sell, your ability to sell for top dollar while also buying with an interest rate below 3% is an ideal place to be.
If you're not planning on buying or selling but you are a homeowner, double check your mortgage’s interest rate. Over 4.6 million people have refinanced their mortgages in the past year and lowered their rates. That’s almost 25% of the homeowners in this country.
Why wouldn’t you want to lower your monthly payment? I understand that it can be a cumbersome and intimidating process to refinance. There is a bit of paperwork involved. If you don’t have someone to give you guidance through the process, that makes the process even more difficult. However, if you work with a strong agent and local lender, you could be saving $600 to $700 per month for the remainder of the life of your loan.
If you need some advice on how to buy, sell, or refinance in this market, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.