24 January, 2021

Housing Market in the USA and some tools to help buyer

The Covid-19 pandemic has hit a lot of sectors and jobs, but how is the housing market in the US after the pandemic?

The answer is a bit surprising. Like every other sector, everybody expected a plunge. But, housing rates are skyrocketing in almost all states in the USA.

The current state of the real estate market in Colorado Springs is this as per greatcoloradohomes.com.

Total active listings went down 59% from last year and the house average price rose 20% from last year. Colorado springs is the strongest seller's market than ever before. So, until the inventory raises again, even though it's not a good time to buy a home now, the average house prices continue to rise making buyers restless. Interest rates are at record low making the buyers' decision still confusing.

What about other regions in the USA?

As per this article from Forbes,

On the whole, the market will remain seller-friendly, but buyers will still have relatively low mortgage rates and an eventually improving selection of homes for sale in 2021.

By the end of 2021, the market might pick up with new constructions and sellers being comfortable. But, the economists predict sales to grow 7% and prices to increase another 5.7% on top of the 2020's already high levels.

As per Elena from better.com, we will continue to see a growth in millennial home buying regardless of interest rate changes.

As per other experts, due to fewer inventory / supply-demand gaps, house prices might go high in the first half of 2021 and could ease a bit in the second half of the year.

With these many confusions and predictions, it only makes sense to use technology to decide on buying a new home.

There are numerous tools on Mortgagecalculators.info to help in this decision. Since we are planning to buy a new home, I found these calculators very useful to know the home price we can afford based on our annual income, debts, bills, down payment, property taxes in our area, HOA, and many other parameters which influence our decision highly.

I found the Advanced Mortgage calculator beneficial with features like loan payment breakdown graphs, biweekly savings, other closing costs, and monthly amortization tables.

As per this article from Bloomberg, experts feel, buyers will prefer renting than buying a new house due to less inventory and rising prices. When most of the people in the USA get vaccines by May, and if all the sectors pick up again after the downfall of Covid, the economy might recover making the second half of 2021 good again for buyers.

We can always be hopeful of situations, right? But, right now, being safe from Covid and getting vaccinated are the priorities. Won't you agree?

Until next time,

PS: All pictures from www.pixabay.com

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