Owning a home is one of the most sought-after dreams that anyone can have. While the world is still reeling with a pandemic that seems to grow stronger by the year and the resulting economic recession, they take heart from the favorable real estate market that allows them to buy homes at record low mortgage rates.
While it may seem that a rapid increase in demand may lead to a real estate bubble, the opposite seems to be the case. A Warrenville real estate attorney from Covert Marrero Covert can guide you to the best decision.
Why the US Housing Market Can Avoid Another Real Estate Bubble
As more and more people opt to work from home in 2021, the value of residential properties across the US is increasing. As the world grows hopeful for a return to normalcy during successful vaccination campaigns, economic growth has been positive across the board. There has been a positive increase in high investments in the stock market along with higher consumer expenditures.
Both of these factors have impacted the US housing market amidst a housing boom that outperformed expectations. As of March of this year, the median home prices in the country increased by more than 11%.
The steady growth of the housing market has led many to wonder if we are in the middle of a new real estate bubble. As per market updates, as consumer demands coincide with the real estate season, a reduced number of homes have increased prices.
The news is heartening. While median home prices in the US are expected to be higher than those in 2020, the median mortgage rate is forecasted to remain around 3% at most. This alone should be enough incentive for homebuyers to lock in properties before the rates go up any further.
The expectation of a housing market crash is understandable, but so far, the data has proven that there is nothing to worry about at present. Like other economic sectors, the real estate market is susceptible to several factors. The patchy impact of the Covid-19 pandemic on the employment sector and the country’s overall income level will likely affect the 2021 housing market.
As such, there has been a slow but steady decline in home sales in 2021 on a monthly and yearly basis. This proves that the housing market is cooling down slowly after the buying frenzy of 2020 and 2021. The good news is that the decline is slow enough to prevent a large housing bubble from making a difference.
Contact an Experienced Warrenville Real Estate Attorney for Lucrative Investments
If you are interested in buying a home or investing in real estate, you need to have a dedicated Warrenville real estate attorney in your corner. This is where the real estate lawyers at Covert Marrero Covert can help. We are experienced in guiding clients such as yourself through complex real estate transactions that can result in great investments. Our professional attorneys are skillful in helping our clients with a range of real estate transactions to improve their portfolios. Get in touch with us for a consultation today and see how we can help you.