What Real Estate Investors Need to Know for the Rest of 2021

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The housing market is constantly changing, and real estate trends come and go. Throw in that the real estate market is different in every state, city, and metro area, and you can bet that things won’t remain stagnant for long.

What Real Estate Investors Need to Know for the Rest of 2021

That being said, there are a few generalized trends affecting the real estate market this year, and you should be aware of them if you plan on investing or have already invested in real estate.

  • Real estate prices—Local buyer demand and the number of houses available for purchase heavily influence the cost of real estate. On a national level, housing prices have been rising for a while, and this upward trend shows few signs of slowing down.
  • Interest rates—Mortgage rates can impact demand, affordability, and housing prices. In late 2020 and early 2021, mortgage rates hit historic lows. Although rates have started to climb slightly during the second half of the year, rates should remain low for a while longer.
  • Housing affordability—Inflation, incomes, interest rates, and housing prices all play a role in real estate affordability. Although home prices are soaring, this doesn’t necessarily mean houses are becoming less affordable. When factoring in inflation, rates, income trends, and other factors, consumer house-buying power soared by the end of 2020 and continues to do so in 2021.
  • Housing inventory—Housing supply has been low recently, and the pandemic only created more of a problem. Although listings continue to remain low, they have recovered slightly and should continue to do so through 2021 and the new year.

For more insight into the real estate market and current trends, make sure you listen to our podcast, Today’s Real Talk.