What does the real estate market have in store for home buyers, sellers and owners in the Northeast this year? Many national real estate forecasts for 2021 have been published, but the Northeast, like every part of the country, follows its own trends. We asked Dan White, Draper and Kramer Mortgage’s Regional Vice President for the Northeast, 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: Assuming that mortgage rates remain at or near historic lows, and based on the time it will take for the economy to recover, I would expect an extremely robust market once the COVID-19 vaccines become widely available. Low rates translate into affordability, and when that is combined with the natural pent-up demand that the virus has created by preventing the normal course of homebuying and selling, it seems reasonable to believe that the real estate market would see a significant benefit from buyers and sellers.
Additionally, in the short term, with many folks at least temporarily exiting big cities, suburban communities with good infrastructure and access to public transportation would seem to be on the short list of places where people want to live in the near future.
Q: What predictions and advice on mortgages do you have for homebuyers and homeowners?
A: For a prospective homebuyer that is looking to purchase a home in 2021, I would highly encourage them to open the lines of communication with a loan officer at Draper and Kramer Mortgage and get pre-qualified for a loan so that they are ready in a moment’s notice to make an offer and to ensure that they are regularly hearing about the current rate environment.
Q: What opportunities should first-time homebuyers look for?
A: With interest rates still near historic lows, and first-time homebuyer mortgage programs offering benefits such as down payment and closing cost assistance, there are many opportunities for first-time buyers right now. No one should assume they can’t afford or can’t qualify to buy a home. They should speak with one of our loan officers to find out what options are available for them.
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 am hopeful that we will continue to see continued responsible easing of regulations that allow loan officers to lend faster and more efficiently.
I would guess that movement to the suburbs will be a temporary phenomenon until sometime after the fear of the virus subsides. Cities are such a powerful pull for so many, and we know that people generally have short memories when it comes to bad things happening around them. The price to live in cities may drop temporarily, but that will be further reason for people to move back.
Are you planning to buy or refinance a home in the Northeast in 2021? Contact us to get started with a free mortgage review from one of our local home financing experts.