Despite the COVID-19 pandemic, the housing market has been steadily rising since mid-2020. Now experts are predicting that the housing market will continue to go up in the second half of 2021. That’s why it’s a good time to buy from custom home builders in Grantsville, UT—if you act quickly, you may be able to beat the next rise in pricing.
Why are more people buying homes?
Although the pandemic has had some devastating financial effects, the housing market has continued to improve. Research shows that this is due to one big reason: people need more space to work from home. Even though COVID-19 is winding down and more places are opening back up, remote work seems to be here to stay. If your house isn’t big enough for you to live and work, it can make life miserable.
Another way remote work is contributing to home sales: more people are moving from expensive urban areas to places with cheaper housing. Since they no longer need to be local to work for major companies, more people can afford to move to less urban locations—for example, Grantsville and Tooele City. That drives the prices up in smaller towns, since existing supply often can’t keep up with demand. In fact, Zillow expects home sales to rise about 17 percent over 2020.
Finally, mortgage rates are historically low. Any time mortgage rates drop, buyers who can afford homes tend to take the plunge. (Some also buy additional homes for investment purposes.)
The “ideal” home
So, what kind of homes are buyers looking for? According to research data, the average American is looking for a 2,000 square foot home with three bedrooms and two bathrooms. And since most people are looking for essentially the same thing, the “ideal” home prices are going up steadily. Meanwhile, sellers may not be able to offload their much larger or smaller homes, especially if they’re not in a very desirable location.
Sellers returning to the market
Sellers may start returning to the market soon, however. As unemployment goes down and more people feel economically stable, they may be ready to sell their old home and move to something bigger. Alternatively, homeowners may be forced to sell if they’re unable to keep up with their mortgage payments. Either way, that means more homes on the market.
Aspirational home ownership
Home prices are expected to climb over six percent compared to prices in 2020—even though supply should increase in the coming months. This means that for many renters, first-time home ownership remains purely aspirational.
If you’re having trouble finding the perfect home for your lifestyle, it’s worth avoiding the red-hot seller’s market and working with a home builder in Tooele City, UT instead. UpDwell Homes LLC is committed to building high-quality homes for locals and newcomers alike—and now is the perfect time to lock in a lower price and mortgage rate. Don’t wait for the prices to increase again—call us today to tour our model homes!