The homebuying market of 2021 is much different than in years past. What has largely been thought of as an economic detriment, referring to the COVID-19 pandemic, has introduced some interesting trends moving into the future. As of right now, 2021 has proven to be a great time to buy as both buyers and sellers are benefiting from a wealth of opportunity. Here are some additional insights from your Winter Park real-estate experts at Lakota.
Mortgage Rates Are Still Low
According to Forbes, The average rate on a 30-year fixed-rate mortgage has stayed at 2.73% for the first two weeks in February, giving winter homebuyers incentive to buy quickly, securing a good rate. At this point last year, the rate was as high as 3.5 percent, meaning that we have seen a significant decrease in 2021.
Given the circumstances surrounding the market amidst a pandemic, it is hard to say if these figures will develop into a trend for the year. That being said, it appears to be a great time to buy at the present. Not only do low rates require less payback, but they ultimately increase borrowing power. When compared to the total amount borrowed in January 2020, January 2021 saw an increase of around $40,000 meaning larger loans were granted. This data provides us with key insights into the current state of the housing market.
Second Home Purchases
Buying a second home has some considerable advantages and given the favorable homebuying climate of early 2021, many are considering this option. Aside from being structures for protection and refuge, homes can be a sound investment. Although a mortgage is an expense, money spent does not disappear into the ether as it does with rent payment. As you pay a constant sum, the value of your house can increase significantly over time, leaving you with much more equity than when you closed.
In addition, many second homeowners are profiting on their property through services like airbnb and vrbo. While away from your home, you can rent it out and greatly subsidize the price of your mortgage. Second homeowners are enjoying the best of both worlds, having a lovely vacation home/investment property while paying very little out of pocket. For this reason, second home purchases are a developing trend in the current market.
Buying in a Strategic Location
When it comes to buying an investment or rental property there are several things to consider. Among the primary considerations is location. When determining a good location, homebuyers must consider the future, asking themselves the following questions:
- Is there demand?
- What makes this area attractive?
- Is there growth potential?
- Is this area a good vacation destination?
- Is this area safe and suitable for family living?
- Is there opportunity in this area?
If the answer is ‘yes’ to all or most of the above questions, you have likely found yourself a good buying opportunity. Before buying, you want to make sure that the value of your property will appreciate over time, achieving higher demand as more traffic makes its way to the area.
Buying a Second Home in Winter Park, Colorado
Due to many of the factors mentioned above, real estate in Winter Park has encountered increased demand. Mortgage rates continue to be low, second homes are growing in popularity and the location of our beautiful vacation homes is second to none. Whether you are considering the purchase of a sound investment property, home rental, occasional getaway spot or all of the above, we have just what you need here at Lakota. For more information on homes for sale in Winter Park, give us a call today at 970.531.2345.