Zillow recently released a forecast on home value growth, and it brings good news for current homeowners. The forecast expects home prices to rise 10 percent by November of 2021. They have a variety of reasons for their forecast. For one, the hope of a Covid-19 vaccination will probably cause many hesitators to jump on board with their home purchases. Secondly, the Generation Z and Millenial buyers will most likely be ready to make their purchases. Aside from that, the decline of available housing and the continuance of low-mortgage deals will drive the price of houses up quickly. Other factors such as coming of age will also play a role in the projected market boost.
What It Means for Existing Homeowners
Existing homeowners will be glad they decided to purchase homes when they did. The ones with fixed-rate mortgages will be overjoyed with their decisions the most. Refinancing options also seem to be generous and abundant at this time. Homeowners can use this situation as an opportunity for cash back refinance deals and renovation ventures. Furthermore, investors will be overwhelmed by the upcoming potential for them to earn profits. It looks like a win-win situation for those who already own properties.
What It Means for Prospective Homeowners
Prospective homeowners will need to decide what they want to do and act quickly if they intend to get a good deal on a home. The window of opportunity will narrow over the next 10 months. Right now, mortgage lenders are still offering amazing mortgage rates and homebuying packages. They are finalizing deals quickly, as well. Now seems like the perfect time for buyers to step out of their comfort zones and make moves. Mortgage rates are still at an all-time low, and the economy seems to be slowly recovering from the pandemic.
Contact one of our loan consultants to learn more.