The real estate market is expected to continue growing in 2021, and it’s largely driven by the lasting impact the pandemic is having on our lifestyles. As many of us spend extra time at home, we’re re-evaluating what “home” means and what we may need in one going forward.
Here are 4 reasons people are reconsidering where they live and why they’re expecting to buy a home this year.
1. Record-Low Mortgage Interest Rates
In 2020, the average interest rate for a 30-year fixed mortgage hit a record low multiple times, continuing to fall further below 3%. At most major banks, the average interest rate today is 2.70% or slightly lower.
Many wonder how low these rates will go and how long they’ll last.
This sense of urgency is driving many to buy this year.
2. Working from Home
Remote work is a new normal for many businesses, and it’s lasting longer than most expected. Many in the workforce today are discovering they don’t need to live close to the office anymore and they can get more for their money by moving a little further outside of the city limits. The reality is, for some people, working remotely in their current home is challenging, especially when there may be other options available. We are getting an increase in calls from not only Auckland, but also our other biggest cities Wellington and Christchurch about making the move up north.
3. More Outdoor Space
Another new priority for homeowners is having more usable outdoor space. Being at home is driving those in some areas to seek less densely populated neighbourhoods so they have more room to stretch their legs. In addition, those living in units and townhouses are often looking for extra square meters, both inside and out.
4. Avoiding Renovations
It’s recently come to light that many homeowners would also rather buy a new home than go through the process of fixing up the one they have. Depending on what needs to be addressed, today’s high buyer demand may make it possible to skip some renovations before selling. Many of these homeowners have prioritized buying over renovating for convenience and potential cost savings.
It’s clear that homeownership needs are changing. As a result, more Kiwis are expected to move this year than last year.
If you’re trying to decide if now is the right time to sell your home to take advantage of these reasons, then contact me today to discuss your options.
Helpful and interesting info from Paul, and Harcourts to help you with your property journey.