Who knew that during such a restrictive year that was 2020, the real estate market nation-wide would grow (like gangbusters here in Las Vegas!) And many experts are predicting continued growth in 2021. With so many of us spending extra time at home, including remote learning situations in addition to home office setups, the pandemic is having a lasting impact on our lifestyles and what “home” means (and needs) going forward.
Here are 4 reasons people are reconsidering where they live and why they’re expecting to buy a home this year.
1. Record-Low Mortgage Interest Rates
Seriously, this is a game changer. It’s so much more affordable to buy a house when the average 30-year fixed interest rate today is in the neighborhood of 2.65%! Many wonder how low these rates will go and how long they’ll last (in 2020, the average interest rate for a 30-year fixed mortgage hit a record low 16 times!) You may not want to wait too long before making the shift.
2. Working from Home
Remote work is a new reality, and it’s expected that many businesses will keep this model in place even when the pandemic restrictions are lifted. You may not need to live so close to the office. In fact, if you have been living and working in California and have shifted to 100% home office, your salary can stretch so much further in Nevada (the lack of a state income tax alone is an instant pay raise!) If your current home presents a logistics challenge, especially when the kiddos are remote learning and need their study space, too, you may want to consider expanding your horizons. Finding the right space for your current needs is vitally important to ensuring comfort (and sanity!) in our new work/home environments.
3. More Outdoor Space
Another new priority for homeowners is having more usable outdoor space. Being at home so much is driving buyers to seek less densely populated neighborhoods so they have more room to stretch their legs. And in Las Vegas, the high summer temperatures lend itself to a swimming pool. In addition, those living in apartments and townhomes are often looking for extra square footage, both inside and out. With more people finding outdoor activities the priority right now, this is a trend that’s expected to grow in 2021 and beyond.
4. Avoiding Renovations
Unless you are particularly inspired by the Property Brothers, many homeowners would rather buy a new home than go through the process of fixing up the one they have. According a 2020 Profile of Home Buyers and Sellers, nearly half of homebuyers purchased a new home to “avoid renovations or problems with the plumbing or electricity.”
Depending on what needs to be addressed, today’s high buyer demand may make it possible to skip some renovations before selling. Many of these homeowners have prioritized buying over renovating for convenience and potential cost savings.
It’s clear that the needs of our nests are changing. As a result, Americans are expected to move in record numbers this year.