5 Reasons Why You Should Build Your Home in 2021
2020 was a challenging year in the real estate sector. There were several vacant homes, with the majority of the population investing in low-rate housing to cope with the pandemic. However, as the pandemic eazes due to the release of vaccines, more people are looking to build their dream homes that can accommodate their needs instead of leasing.
Here are a few reasons why 2021 is the ideal year to build your dream home.
Shrinking inventory on existing homes
According to June housing data, there has been a drop of new properties by 19.3% in 2020. This number continues to reduce, creating fierce competition in the market. For home buyers, this means that they have to pay higher prices for homes as the inventory continues to shrink. Higher prices mean that you have to settle for a home that compromises on some of your needs, making home building an ideal option.
Competition due to a surge in the number of home buyers
Millennials are slowly but surely becoming the biggest consumers in regards to buying their starter homes. In 2018 there was a low record in homeownership by millennials. However, as they grow into their prime years, they make up the largest segment of homebuyers. As the inventory of homes for sale decreases, one has to fight the competition and pay a hefty amount before their dream home is snatched.
Increased popularity in builds
According to the construction industry report, builds are becoming more popular. During the COVID 19 pandemic, the majority of the population began working from home. Most people moved back to the countryside with their families, increasing the need for larger living spaces to accommodate family members and home offices.
The majority of the real estate companies switched to building homes and making renovations at affordable rates during the pandemic to accommodate the new living conditions. If you find yourself thinking about your ideal home, the ability to accommodate your family and business, 2021 is the perfect year to build a new home.
Increasing mortgage rates
Historically, mortgage rates are low. In 2020, the rates dropped to accommodate the vast inventory and allow people to own homes at low mortgage rates. However, they are expected to start rising in 2021 due to the reducing inventory and competition for homes. Building homes become the better alternative to avoid mortgage payments as you try to get back on your feet after the pandemic and change to a new environment.
More home designs are coming up in 2021 to accommodate homeowners’ needs that may not have been there in previous homes. Building your ideal home allows you to incorporate trends such as smart technology, open kitchens, skylight, solar energy, spacious rooms, and an outdoor area. If you’re living in a home that limits your capabilities, this is the ideal time to consider building.
With the lessons learned in 2020 on the importance of having a stable home for the future, 2021 is the perfect time to commence building. Instead of renting or buying a home that doesn’t accommodate all your needs, build your dream home. Observe real estate trends to determine what works best for you now and in the future.
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