What homebuyers should expect in 2021
2020 was a unique year for how people valued and bought real estate in Greater Boston.
Here are a couple key takeaways to keep in mind:
Historic low-interest rates were put in place by the Federal Reserve. Mortgages under 3% were very common. This made the overall cost of home ownership lower.
Refinance loans reached an 11-year high and accounted for about 60% of lending activity. People actively lowered their cost of home ownership on their existing mortgages.
Compared to 2019, single family home sales were 38% lower. Due to the pandemic, people were less motivated to sell and move. This pushed pricing up by 15%. People wanted more space as work became remote.
Compared to 2019, condominiums and multifamily both increased 3-5% in price and days on market stayed relatively flat. People did not value being in town or city centers as much.
3D virtual tours became almost ubiquitous with online home touring. People can now do more research about a home online than ever before.
While unemployment grew to double digits in Massachusetts, the recovery has been strong and is in line with most states. People utilized Federal relief programs where possible, but are starting to get back to work.
Nuhom launched in mid-2020 and had many happy homebuyers who saved an average of $7,500 on their home purchase.
Here are Nuhom’s expectations for 2021:
Low interest rates have plateaued. While they will remain relatively low into 2022, they will begin to pick up this year.
Single family homes will continue to have a lack of supply on the market and this will keep pricing competitive. But, it won’t be as tough as 2020. There will be more options to choose from.
Condominiums and multifamily will perform similarly to 2020. There will be competition, but more so for new construction townhomes.
Unemployment will continue to stabilize and decrease.
Nuhom will have more happy homebuyers and provide more savings. This year, we will increase transparency in the homebuying process as you have never seen before.
Nuhom is in the midst of publishing the ultimate homebuyer's guide for those looking to purchase a home in the Greater Boston area. Be on the lookout and stay tuned! Connect with us if you have any questions about homebuying and how to navigate the process.
Nuhom is a Boston based full-service real estate tech company making home buying convenient, fast, and rewarding. We have dismantled the traditional home buying process and replaced it with innovative technology, far fewer hurdles, and more savings for the modern homebuyer. Learn more at www.nuhom.co