How Home Buying/Selling Has Changed In 2021

The process of buying and selling a house is not easy, it is quite complicated. With great complexity, also comes great changes. Before diving into the whole home buying and selling process, it’s important to know the rules, facts, and changes that have taken place. Each tiny aspect of the process can be a game-changing piece of information that you may need to consider at some point before you decide to look for properties or rent properties in India. There will be many challenges to overcome to have a successful event. In 2021, there are a fair amount of chances that you or someone you know decided to buy or sell a property. There’s no denying that this is because of the record-making real estate boom over the past few years. The Covid-19 pandemic has affected almost all industries, including real estate. The experts as well as the general public both know how significantly the pandemic has affected the buying and selling process of homes. 

The real estate industry has been greatly affected by job and financial changes, the stay-at-home situation, and low interest rates. Buyers are writing bigger down-payment checks, making offers well over the asking price, waiving more contingencies, and going on additional home tours to compete. That's because of the high demand and low inventory created by a collection of pandemic-related factors. Homes are being bought and sold at a record-breaking pace. The pandemic boosted real estate to an average of 42% of home listings worldwide. India’s real estate sector might have suffered a setback during the first and the second wave of the COVID-19 pandemic but housing demand in the country has revived with many people looking to rent properties in India.  While addressing a CII virtual meet, the housing secretary also pointed out that India’s real estate market was estimated to touch $1 trillion by 2030, driven by rising demand and various reforms in the past seven years. Here are some ways in which home buying and selling have changed in 2021. 

 Hike In Buyers

Today in 2021, it is easy to find a house in good condition which is also priced at a reasonable price. The number of buyers trying to get hold of the house with countless offers will be lots, even though the house just entered the market. Homes are selling quickly because of a large number of buyers. Due to the financial change caused by the pandemic, many homeowners looked to rent properties in India.

In the first part of 2021, most existing homes sold in less than a month, and this trend continued in May and June, when they typically sold in just 17 days. As a seller, it is important that you consider being flexible. To stand out in the market and to attract buyers, it will be good to make some concessions. But that too has risks. So it is first important to understand the market.

Rise In Property Prices

The pandemic shifted the real estate market and resulted in many changes. One of them was the high rise in property rates. Property rates went up in the first half of the year across the country and will continue to rise. The early months showed home prices growing by nearly 20% compared to last year. This is a win for the sellers but a very big disadvantage for the buyers. But there are plenty of things buyers can still do. 

You can limit your house payment to no more than 25% of your monthly take-home pay. This would include principal, interest, property taxes and homeowner’s insurance too. For sellers, the profit would be good in case you need the extra money in buying a new house. People looking to rent properties in India will also have a big advantage. 

Expected Increase In Mortgage Rates

Mortgage rates remain low but are expected to inch up by the end of the year. The 30-year fixed-rate mortgage is projected to average 3.3% in the fourth quarter of 2021, up from an average of 3% in the second quarter. Even though rates are generally low, it's still important to shop around for a mortgage. The rate you're offered will depend on the lender and your financial circumstances. Contact multiple lenders to compare mortgage rates and fees, and choose the best deal you're offered.

Digital Change In Buying And Selling

Virtual home tours, e-closings, smaller open houses, and video calls to rent properties in India have helped keep business going while keeping people safe during the COVID-19 pandemic. These online tools will continue to ease the home buying process even after the pandemic.

In conclusion, the pandemic as well as other aspects have changed the real estate ga,e drastically, especially in 2021. It has been a sudden and significant change that has profited many as well as put many at a loss. The best takeaway is that before getting into the process of buying and selling a home this year, it will be a great help to learn more about the market and understand the intricacy of the market. Studying more and getting help from agents will be a big win to have a successful process. 

Credits: Manavi Sarang