Real estate experts expect the real estate market to continue growing in 2021, primarily due to the significant impact of the pandemic. We’re spending more time at home than ever. So, it’s important now to figure out what home really means and what we might need in our homes from now on. Today we’re looking at why people are reevaluating their lives, where they live, and why many people are expected to buy a home in 2021.
The first and most obvious reason is that we’re experiencing record-low mortgage interest rates.
Last year in Canada, the average interest rate for a 25-year fixed mortgage hit a record low multiple times, falling below 1%. But, of course, no one knows for sure how low the rates will go or how long the rates will stay this low, which is why many people have a lot of incentive to act and buy a home. So, what will continue to drive buyers in 2021 is this feeling of urgency.
More of us are working from home.
Another big reason we anticipate many homes to be sold this year is that so many of us are working from home. Working from home has been a significant change for many businesses, and many workers are leaving the big cities to work remotely in smaller, more affordable communities. As a result, people don’t need to be all that close to the office anymore, which has created a surge in people pursuing ownership instead of renting.
The desire for additional outdoor space.
As mentioned before, many people from the big cities are seeking smaller communities. The time that they’ve spent at home has made people desire more outdoor space where they spend so much more of their time. Lockdowns and stay-at-home orders feed the desire and people to seek larger outdoor spaces for themselves and their families something that isn’t always available and/or reasonably priced in other markets.
People know that they’re able to avoid renovations by buying a new home.
Many people would rather buy a new home free of issues than put in the effort to do renovations to fix and pay for problems with electricity or plumbing. With such high demand currently, it’s often the case that many sellers can skip renovations before selling, so they see buying a new home as an easy-out of their issues. Likewise, many homeowners would prefer to prioritize buying over renovating because it’s convenient.
New home construction.
Also, people are looking at new home construction right now, as we’re in a very competitive market, buyers are looking for alternatives. With that said, it can be difficult to find new homes that will be ready to move in to for 2021 in Kingston. So some are buying now to wait another year or two to make a move.
Will 2021 be another record year in Kingston for real estate sales? That has yet to be seen. But if you need to sell, our team is here waiting for you. Give us a call today at 613-929-4913