The housing market has been on fire in the year 2020. Much of this is a result to the Covid-19 situation and how the whole world has changed the traditional way of living. Remote working or work from home being a new normal has brought about sudden relocation and mortgage rates have seen a record low. What next? Is this going to continue or would the market rise?

Is 2021 a good time to buy a house?

The year 2020 has seen a high competition with the limited inventory bringing the mortgage rate lowered than it was in the second half of 2019. Danielle Hale, the chief economist at realtor.com says sales are expected to grow by 7% and the price is expected to rise by 5.7 per cent on 2020’s high levels. It is expected that the mortgage rates are going to be ticking up slowly. High buyer demand globally and lagging supply will keep the prices growing gradually.

However in a country like Canada, here are a few things we would like you to consider.

1: Current global uncertainty:

First and foremost, why do you want to purchase a home? If you are looking to purchase a home for a small time investment that grows in value and gives quick returns, this might not be the right time for you. However, if the vaccines show intended results and life gets back to normal this could be a good time to invest.

The industry’s major players all expect mortgage rates to stay in the low 2% range come 2021 at least in the first quarter. Low rates can make buying a higher priced property affordable with lower monthly installments and can help you widen your budget.

2: Home price may rise depending on the global situation

Home prices are likely to maintain the upward tick but at a slower pace making it easier for the ready home buyers to take action in the first half of the year. With a sudden change, update in the global economy may raise the price and mortgage rates.

3: More inventory to choose from

Housing inventory is expected to increase in the year 2021 as newly constructed properties are expected to rise in numbers by 2021. This means you may have more houses to look at similar price bracket. Having your needs clear before buying the property would make it simpler to make the right choice. Price may still rise but you may have more option to look at.

4: Variations

We can’t ignore the fact that the housing conditions may vary according to the market and it affects locally. So if you have been thinking about really buying a house, get in touch with your local real estate and mortgage consultant before you make your mind. Remember to connect with a mortgage agent with very good experience and someone who can give an unbiased advise as your buying your dream house should not hamper your other personal or professional dreams.

We are committed to helping our clients reach their potential growth without actually compromising on their dreams. If you are looking for unbiased and transparent advice on purchasing a mortgage, you can connect with us here.