The pandemic has compelled many industries to change their day-to-day processes and work around restrictions. In 2021, the real estate market will continue to experience the effects of the lockdown. In this article, we will explore how trends may impact turnkey real estate properties.
Limited Supply in the Housing Market
The lockdown came with restrictions, keeping construction companies on hold for many seasons. As a result, this disruption of supply lines has led to a shortage of inventory in the housing market.
Given that the lockdown restrictions will take time before they are lifted, analysts believe the shortage will persist into 2021. The market will become increasingly competitive. The limited supply may prompt more buyers and sellers to consider other options, such as cash for houses.
Home Price Growth
In 2021, you can expect a rise in home prices. According to statistics, the median price was approximately $318,400 in the third quarter of 2019. It rose to $324,900 in the same period in 2020. The growth is likely to continue into the first quarter of 2021. But projections suggest it may slow down towards the end of the year.
Statistics also show that more millennials are looking to move to suburbs and less noisy neighborhoods. As more people transition to working from home, the focus is on tranquil surroundings. Migration is one of the factors analysts believe will keep prices high.
More Lending Restrictions
Although mortgage rates are low, buyers may find it hard to secure financing. The economic challenges of 2020 and the high unemployment rate have forced lenders to demand higher credit scores. If you are looking to sell your house fast, the best option today may be turnkey properties.
With cash for house properties, the paperwork is minimal, and the approval period is short. The option is convenient for homeowners who are cash-strapped and looking to sell their home fast. With turnkey homes, there is no requirement to wait for bank approvals. In most real estate contracts, the commission is 5% to 6% of the sold property.
Implications of Social Distancing
The social distancing restrictions have had implications for buyers and sellers alike. Homeowners have limited options when it comes to organizing home tours. It makes selling your house fast complicated.
Cash for houses companies can take away the hassle of selling your home. Finding a buyer may involve a lot of legwork and documentation. With turnkey real estate, you delegate the work to a team of experienced and skilled professionals.
Adoption of Technology in Real Estate
Homeowners have had to turn to technology to showcase and list their homes for the market. That means sellers have to invest in equipment to provide quality images and Virtual Reality visuals. A turnkey home service is in an ideal position to handle the promotion and selling of the property.
The lockdown has had a devastating impact on the real estate market. Social distancing and mortgage restrictions have complicated the process, making it harder to sell your house fast in Cleveland. However, markets are moving back to normalcy again. But since it may take time for restrictions to ease, cash for houses may be the best option for sellers today.