The first quarter of 2021 is shaping up to look like most of 2020 did when it comes to real estate. Interest rates are low, the home market is competitive, and inventory is at an all-time low across Southern California. There is one significant difference, the Covid-19 vaccine is rolling out across the nation, and it brings a feeling of hope and excitement we haven’t felt in a long time. The light at the end of the tunnel is now visible. 2021 is the year the world will open again.
The vaccine is empowering people.
As more people get vaccinated, and the level of fear subsides, real estate will become even more active! As businesses re-open, especially in the hospitality and entertainment sectors, employment will increase, so confidence will increase. Sellers will feel comfortable listing their homes. There will be an increase in buyers, especially among the 62M Millennials who are now ready to purchase.
Vaccine + Government Stimulus + Accumulated Savings + Reduction of Fear = Post Pandemic BOOM!
We see activity across all price points, from first-time homebuyers to ultra-high net worth individuals, and the mortgage industry is leading the way.
Mortgage interest rates are still under 3%. Even if rates inch up slightly, the demand is so great that it won’t sway buyers.
The VA market is exceptional, averaging around 2.25%.
Jumbo Loans are strong. Portfolio lenders have money for fixed-rate jumbo loans allowing mortgage companies to go head-to-head with banks offering competitive rates to a broader market of individuals.
The first quarter is a great time to buy. With the market as hot as it is, it’s more important than ever to ensure your financial house is in order. We are available to help you shore up your financial profiles, provide pre-approval, and help you succeed in your real estate goal in 2021. Contact one of our experienced loan officers today!