When pandemic restrictions were initially implemented in March 2020, the American housing market came to a screeching halt that lasted several months. By the time the highly anticipated general elections took place in early November, real estate market participants were ready to take advantage of low mortgage interest rates and strong demand. For homeowners, this emerging trend means that they have an opportunity to profit from property sales if they play the right cards.
The Housing Market in 2021
With the right market conditions, smart home sellers can list their properties at levels well above median prices; the key is to choose the right improvement project. Through our experience working with real estate professionals, we can tell you that foundational and structural improvements can go a very long way in justifying a higher sale price. A home inspector can determine if structural issues are affecting your property. Keep in mind that buyers and mortgage lenders will order home inspections; should structural damage be detected, this can open the door to bargaining in favor of the buyer.
Adding a bedroom can certainly give your property an equity boost. Recent changes in socioeconomic conditions and demographics reveal that more people are living under the same roofs. In some cases, elderly parents stay with their adult children; in other situations, adult children move in with their own partners and children. Hispanic buyers who appreciate strong family bonds enjoy living with more relatives, and they are willing to pay more for properties with more bedrooms and interior square footage. In recent years, national home builders have introduced new floor plans that are essentially “homes within homes,” and this is part of a change in buyer demographics.