What does the real estate market have in store for home buyers, sellers and owners in the Mid-Atlantic this year? Many national real estate forecasts for 2021 have been published, but the Mid-Atlantic, like every part of the country, follows its own trends. We asked Matt Patterson, Draper and Kramer Mortgage’s Mid-Atlantic-based Executive Vice President of Business Development, 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: In the Mid-Atlantic, the predicted trend will result from a combination of interest rate conditions, general economic trends and a newfound reconsideration regarding where one will choose to live. COVID-19 has influenced where homeowners report to work, and many now work in their homes or only need to report to an office for a portion of the week. This has influenced homeowners to now relocate or perhaps make their second homes their primary homes.
Q: What predictions and advice on mortgages do you have for homebuyers and homeowners?
A: Stick to the basics: 1. Determine your homebuying or refinancing goals for 2021. 2. Consult with a qualified mortgage loan officer, and share your goals with them so that they can assist you in building the best mortgage plan to help you achieve them. 3. If you’re planning to buy a home, work with a Realtor. More often than not, your loan officer will have an excellent recommendation.
Q: What opportunities should first-time homebuyers look for?
A: First-time homebuyers have many options from state housing programs, FHA loans with low down payment options, purchase loans with renovation options and more. This means it’s important to work diligently with your mortgage loan officer to set a plan in motion. Keep in mind that all property types or property conditions are not the same. A program that is available for a single-family home may not be available for a condominium. Perhaps a property that’s not in good shape will need a purchase renovation loan and may not be eligible for a standard mortgage product.
What lasting changes do you think COVID-19 has had on home buying, selling and financing, and what has remained the same?
A: Typically, history shows that when an influence, such as an economic or life event (like COVID-19), occurs and it creates a positive real estate movement, the trend generally runs a few years. Since I see there’s been a positive push in real estate in many parts of the country, it seems this will last a few years. Areas affected by the occurrences in 2020 may have a similar lag time to rebound.
Are you planning to buy or refinance a home in the Mid-Atlantic in 2021? Contact us to get started with a free mortgage review from one of our local home financing experts.