Real Estate Predictions in 2021, #2

Dated: April 8 2021

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The second real estate market prediction for the US in 2021 from CoreLogic's chief economist is that there will be more first time home buyers entering the market.

Remember, CoreLogic bases their predictions on public data and facts. Being in the industry for over seven years, I heavily rely on their data. He believes that the low interest rates will continue to entice buyers to want to enter the market. It's an easier transition to enter the housing market because the principal and interest rate is much lower today than they were a year ago, about 1% lower, and that lowers a buyer's monthly payment significantly so much that often time mortgages are lower than what a monthly payment for a rental would be. And remember, they also have the benefit of writing off some of the mortgage interest.

Buyers also have more monthly cashflow because mortgage rates are lower and because of the interest write-off. However, there is a negative part for buyers and that is that with prices going up, initially, when they purchase a home, they are going to need more money for the downpayment for closing costs and monthly reserve, so that will cause a bit of stress. Once they get in the home, it's great, but initially, getting into the home may be a bit more of an initial financial challenge.

I hope this was helpful. Be sure to search my website at laurie.eresuccess for all four real estate predictions for 2021. Reach out to me at any time for anything as I am always here to help. And remember, when you do what you love, people love what you do. Have a great day, everyone.

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Laurie Smith

I am a full-time professional Realtor providing outstanding service to the SW Florida community. I facilitate your real estate goals in the luxury, new construction, vacation and mid-range markets. ....

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