Forecasts for the housing market consider factors pushing in different directions, making it difficult to decide if now is the right time to buy a house. Low mortgage interest rates and pent-up demand will bolster California home sales in 2021, but economic uncertainty caused by the coronavirus pandemic and a continued supply shortage can limit sales growth. For those who want to buy, an extremely favorable lending market motivates eligible buyers. However, a housing supply constraint can make it difficult to find the home you are looking for in 2021. Individuals considering buying in Southern California now, places like Long Beach, Bixby Knolls, Huntington Beach, Seal Beach, Cerritos, and Downey, have a lot to consider.
One of the most important factors to consider when deciding between buying a house now or later, is your personal finances. The U.S. is experiencing a K-shaped recovery. A K-shaped recovery occurs when, following a recession, different parts of the economy, individuals and businesses, recover at different rates, times, or magnitudes. This type of recovery is called K-shaped because the path of different parts of the economy when charted together may diverge, which makes sense because COVID-19 has had a much more devastating effect on some sectors of the economy as compared to others. In terms of homebuying, this means that some people are more financially eligible to take advantage of low interest rates. Wealthier people are able to access capital at extremely low rates, making it easier and even smart to invest in property. This may explain why sales of higher-priced properties in Southern California are recovering faster than other areas of the market. However, there’s another group of Americans who are still struggling, who perhaps can’t access the credit because credit standards have been raised, or who are still experiencing unemployment. Thus, whether or not to buy may be a factor of access to financing and resources.
Perhaps the most important part of buying a home is choosing the right partners to work with throughout the process. The right help along the house-buying path can provide the confidence and clarity you deserve when making such a big decision. Independently owned and operated, Anchor Seaport Escrow has been serving the real estate community of Long Beach, Bixby Knolls, Huntington Beach, Seal Beach, Cerritos, Downey, and other parts of Southern California for over 43 dedicated years. We help agents, buyers, sellers, and investors with their escrow needs, providing the longevity clients need to feel comfortable and confident during what is often the biggest purchase of their lives. To find out more about our services and how we can support you through the home-buying process, please contact us here.