2021 Real Estate and Mortgage Market Trends
As 2021 began, mortgage rates continued to be at historic lows. Refinancing has dominated the mortgage market for 2020 and the start of 2021. The mortgage lending team at One Community Bank, has noticed a significant rise in clients taking advantage of these low rates since the dropped in 2019.
As the economy begins to stabilize, mortgage rates have started to increase. With only a two-month supply of inventory in Dane County, which is well below average six-month supply, Dane County’s housing market is considered a strong sellers’ market. With such a competitive market, home sellers are receiving multiple offers on their homes, at or above asking price. Home prices in Dane County have jumped almost 10 percent since 2019.
Because of the high, pent up demand for home purchases, buyers are unsure what to do until the housing market improves. Sellers are also cautious to list their home for sale, knowing that as soon as they put their home on the market, they would most likely receive an almost immediate offer – creating an unstable spot for sellers if they are unsure if they will find a home they like or not.
So, what should potential buyers do? Buyers should be proactive in reaching out to their mortgage lender to find out what their financing options are for their new home purchase. One Community Bank, as well as many other lending institutions offer flexible lending programs that will minimize the stress of someone selling and buying a new home.
Now is the time to contact your bank. Explain your situation to the lender and they will very carefully determine a strategy tailored to your needs on buying your new home. It is important to remember that you will need to supply all your personal information to your bank in order to allow you to move quickly on making an offer. Remember that your mortgage loan officer is your partner for your home purchase, we will do whatever it takes to make your purchase as seamless as possible!