What Real Estate Trends Will Impact on 2021’s Housing Market?
2021 is speeding by and as people receive the COVID vaccine, there’s hope on the horizon that things will look up – especially in the real estate market. There are a lot of things that will play a role in the thriving market, and according to insights from top-selling real estate agents, there are eight factors that will impact the market going forward this year.
Let’s take a look at those impactful trends.
1. A seller’s market is here to stay
In 2019, 77% of real estate agents reported that it was a seller’s market, however by February 2021, that number increased by 20%, bringing it up to 97%. Of those agents, 91% were worried that the dwindling inventory was alarming and worried that it wouldn’t improve anytime soon. However, sellers who listed now and in the foreseeable future would definitely benefit from this housing shortage.
2. Housing prices will continue to increase
With inventory being so low and the demand for housing continues to increase, 73% of agents predict that home prices will continue to rise over the course of the next six months.
3. Buyers are willing to enter bidding wars
Housing prices are already on the rise, but since it’s such a strong seller’s market and buyers are pulling out all of the stops to get their offers accepted, bidding wars are breaking out all over. People are offering sellers their full asking price, sometimes even going above asking. They’re foregoing the usual contingencies around home inspections and appraisals. They’re even offering cash!
4. Regional vaccine distribution impacts regions differently
As more of the populace becomes fully vaccinated, the market is going to improve. But it may not improve at the same rate for different regions.50% of agents are seeing a positive turn as buyer and seller activity rises. But when it comes to the southern region, only 14.7% can say they’re seeing an increase in activity.
5. Sellers become more confident as people get vaccinated
Although much of the country is eager to receive the vaccine, 53.6% of agents say there is still hesitation among sellers. As you can imagine, their hesitance only adds to the inventory shortage and when you take into consideration the increased number of buyers coming into the game… The market is unbalanced and on shaky ground.
6. Families may relocate once school’s out
Once school’s out, it’s likely that homeowners with children are going to consider packing their stuff and relocating. Families find it easier to move during the summer because it’s not a hassle enrolling their kids into a new school system, as opposed to trying to do it once the school year is already underway.
7. In-person education may jump start inventory
Homeowners who had a secondary or vacation home may take advantage of this seller’s market and list one of their homes for sale. This would benefit them because that’d save them money (while turning a profit!), but it would also help the dwindling market by adding new houses to the roster of available properties.
8. Homeowners may still need help to pay the bills
All over the country, people have experienced some kind of economic turmoil due to this pandemic. People have lost their jobs, had their hours cut, or had to accept a reduced pay in an effort to pay the bills. However, there are millions of people who face homelessness because they defaulted on their rent or mortgage.
Although the mortgage forbearance program has been extended until the end of June, people are likely to still need government help to avoid foreclosure and possible financial ruin. Some people are so desperate to avoid that hit to their credit, they’ll sell their homes for cash – usually for less money than the home is worth.
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