The current real estate market has reached new heights as prices of homes are rising, and supply continues to fall while new buyers continue to enter the market.
The National Association of Realtors reports continued growth in the total existing home sales and median home prices. The average median existing home price is expected to reach $323,900 in 2021 compared to the $296,700 average of 2020. Reports expect this trend to continue into at least 2022 with a projected 3.1% growth compared to the 2021 average.
Those unable to take advantage of high selling prices can still capitalize on this boom by thinking outside the box.
1. Consider Investing into Real Estate to Capitalize on this Opportunity
The concept of having a passive income is very appealing as a way to gain additional funds or supplement a more time-consuming form of income. Those with enough upfront money can give rent estate serious consideration to make ends meet. Despite the high demand for houses in 2021, there is still a huge market for those looking to rent. As an overall trend, homeownership continues to fall reaching a record low of 63.5% in late 2016, according to census reports.
Renting out rooms, extra living space, or an entire home is easier now than ever with apps such as Airbnb. Passive income obtained through renting spaces can be used to cover both your living expenses and repairs to the property you are maintaining.
2. Look into Relevant Stocks that are Booming Alongside the Housing Market
Contractors and building material supplies are experiencing a large increase in business and profits due to increased housing demands. There are not enough houses on the market to meet the current demand, so contractors are increasing their efforts to build homes and capitalizes on this seller’s market. Despite high prices of contraction materials such as lumber, projects continue to move forward and are still seeing a net profit. Investing in builder and supplier stocks could see gains as these industries continue to thrive.
The United States Census Bureau reported continued growth regarding the number of privately‐owned housing units authorized by building permits in April 2021. With a seasonally adjusted annual rate of 1,760,000, this is 0.3 % above April’s number and 60.9 % above April 2020. The rates for April 2021 housing construction starts and completions were also well above their 2020 counterparts.
Additionally, overall stocks for construction supplies have seen an increase since the housing market boom. Large companies such as Home Depot and Lowes have experienced a large amount of growth since early March. Consider capitalizing on these gains and investing responsibly.
W3ll advises you to investigate all possibilities and make the best decision for you when it comes to investing in the stock market to make the most out of this seller’s market.
3. Continue to Invest in Home Improvement to Further Improve Your Property Value
Homeowners not ready to sell are becoming more aware of the value of their homes and the benefits of investing in them. Additionally, many are still spending a large amount of time at home as working remotely becomes a permeant reality for many. This Summer is expected to see many taking on weekend projects in efforts to update their living space and prepare for a time when they are ready to sell.
Better Homes & Gardens reported that buyers are no longer looking for a fixer-upper home. Rather, buyers value move-in-ready homes that only require cosmetic upgrades. According to their survey, 52% of current homebuyers valued purchasing a home that doesn’t require any renovations or repairs.
If you are looking to sell in the future, investing in your home now is a great way to improve your current living situation while increasing the potential price when you do plan to sell.
Regardless of if you are selling or buying, don’t forget that you still have health insurance options. Qualifying life events afford you a fresh chance to shop for affordable health insurance via the Marketplace. To help you navigate this special enrollment period and to help you calculate your eligible tax benefits, browse with W3ll!