What does the real estate market have in store for home buyers, sellers and owners in the Midwest this year? Many national real estate forecasts for 2021 have been published, but the Midwest, like every part of the country, follows its own trends. We asked Roy Taylor, Draper and Kramer Mortgage’s Regional Vice President for the Midwest, four important questions about what’s ahead for real estate in the region. Here’s what he had to say.
Q: What trends should homebuyers and sellers expect for the real estate market?
A: With mortgage interest rates at historic lows along with an extremely tight housing inventory, we anticipate a strong real estate market for at least the first half of 2021. The COVID-19 vaccines will likely translate to a stronger economy and rates moving higher in the second half of the year, all at a measured pace.
For now, the trend of leaving cities for the suburbs is quite real in places like Chicago. Since the pandemic, city markets have been soft when compared to the suburbs. This is causing suburban prices to escalate and city prices to drop a bit. I believe as the pandemic ends and cities begin to open and get back to normal, the city markets will come back into balance.
Q: What predictions and advice on mortgages do you have for homebuyers and homeowners?
A: Online research is a great tool that all mortgage borrowers now use. However, it does come with some misleading facts and interest rates. People should use the web as a tool for information, but they should also get involved with a professional loan officer early on when considering a home purchase or refinance. A true professional loan officer is someone who gives the borrower all the information they need to make the correct decision for what suits their needs for today and the long term.
Q: What opportunities should first-time homebuyers look for?
A: First-time homebuyers can look forward to affordability due to low mortgage rates, a strengthening economy and making moves that had been delayed, which will all contribute to a good year ahead.
Q: What lasting changes do you think COVID-19 has had on home buying, selling and financing, and what has remained the same?
A: I would guess that initial home showings will be done virtually a lot more often, but I think the typical buyer will want to step inside of a home before buying it. Given the fact that this is usually the largest purchase they make in their lives, buying virtually would be a pretty big leap for most.
Are you planning to buy or refinance a home in the Midwest in 2021? Contact us to get started with a free mortgage review from one of our local home financing experts.