Real estate is often the first investment an individual or family makes to contribute toward their financial future. Not only does owning a home provide certain lifestyle benefits, but it can help you begin your journey toward creating sustainable wealth for you and your family. While many people understand the importance of location and price, timing is also critical when buying or selling real estate.
Whether you’re looking for your first home or are considering buying a second investment property, there are some things you should know about the 2021 housing market. Now is a highly volatile time to buy or sell a home, with many factors to consider before you take the plunge.
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Current U.S. Real Estate Market Trends
2021 has generally been considered a seller’s market, largely impacted by the COVID-19 pandemic. Because restrictions due to COVID-19 are more or less out of sight, buyers are looking to move ASAP after a year of delay. 2020 also took a hit on the job market, which means many people are moving out of town or state to find more stable employment opportunities. This creates a perfect recipe for a competitive market for buyers regardless of location or price range.
In addition to this high demand, many owners are hesitant to list. The ups and downs of 2020 have made housing and rentals insecure for many families, and those who don’t need to sell are holding onto what security they have left if possible. An unusually dry market has led to higher prices for homes and a tricky buyer’s market to navigate.
At first, this may sound like a prime opportunity for sellers to make a huge profit on their properties. However, we encourage sellers to think carefully before selling their primary home. Once you sell, you’ll simultaneously enter the extremely competitive buyer’s market or struggle with the rising rental rates across the U.S. Now is an ideal time to sell an investment property such as a second home, but not the best time to sell your primary residence unless you’re ready and willing to compete for a new home.
Because of the high prices, you might think that now is not the time to invest in a rental property or second home. However, historically low mortgage rates could make it worth your while. If you have good credit and can secure one of these low rates, it may be worth it when it’s time to sell again. OneAscent has seen several investors secure incredible rates on higher-priced homes and believe that this advantage will serve them well long-term.
Benefits of Investing in Real Estate
An investment property can also help you generate passive income through rentals, which can aid in navigating the uncertain economic future. The COVID-19 delta variant is on the rise, which means that another economic recession may be in store for certain parts of the nation. By investing in a rental property when the economy is strong, you are simultaneously investing in a potential source of revenue when times are tough.
Is Now The Time To Buy? Or Should I Sell?
The answer to these questions greatly depends on your current financial situation, income stability, and plans for the next few years. To get a more accurate assessment based on your needs, contact the OneAscent team today. We can help you determine what real estate investments are right for you and identify other investment opportunities to help build your portfolio. Schedule a consultation today!