During the past year, the Hilton Head-Bluffton area housing market has been like the wild, wild West. We have seen low inventory, rising home prices, and bidding wars, making it very challenging for many buyers to find and buy their dream home. Will the New Year be kinder to buyers and a better time to buy a house?
While no one can say for sure, we are beginning to see some real estate predictions that are giving us a picture of what the housing market will look like in 2021.
Here are some examples of these industry indicators:
Low interest rates – Mortgage rates are expected to stay low in 2021. The Mortgage Banker Association predicts that 30-year loan rates will continue to be in the 3% range or even lower.
More affordable housing – A mortgage with lower monthly payments may increase buyers’ budgets, which will make it easier to purchase more home for the money.
Home prices rising – Current trends indicate that home prices will continue to increase in 2021 but at a slower rate than in 2020, resulting in still affordable housing.
More homes to choose from – Inventory has been very low during the past year but all projections point to an increase in inventory in 2021 for new and resale homes.
Home buyers get a break – With more homes for sale and an increase in competition, it is possible that prospective home buyers may be able to get good deals on good houses.
Housing demand increases – On the other hand, if the up-North demand for Lowcountry housing continues to increase, sellers may still have the advantage
Political uncertainty ends – If post-election results prevail and the country comes together to support the new administration, the good psychology of it all will be very good for both buyers and seller.
The current pandemic – From all that I have seen and heard, real estate activity is expected to skyrocket as soon as “COVID” turns into “NOVID.”
Even after reading all of the above, understand that housing market conditions do vary (and sometimes a lot) by location and community.
So if you are thinking about buying a home somewhere between Sea Pines and Sun City, I suggest you talk to your local real estate agent. She or he will be able to help you find your dream home in your specific market.
Larry Stoller is a broker and Realtor with Real Estate Five of the Lowcountry. Larry@RealEstateFive.com, RealEstateFive.com, SunCityOpenHouses247.com