What Do These 2021 Housing Market Predictions Mean for You?
One can never predict how the economy will fare after such of a tumultuous year like we had in 2020. Millions of Americans are still struggling to put food on the table and keep their homes because of the pandemic and countless businesses closing their doors or cutting hours. Yet, despite the economic uncertainty, the real estate industry has managed to keep its head above water.
If you’re considering whether or not now is the time for you, perhaps these predictions for 2021's housing trends, courtesy of the Q4 2020 survey released by HomeLight will give you some clarity.
1. Inventory < Demand
The number of houses available is sorely lacking, according to 84% of agents who participated in the survey. There are many qualified buyers hoping to find their next home but there simply aren’t enough homes for sale. This means that buyers are chomping at the bit to get the house they love, even if they have to bid over asking, get into a bidding war, or make a clean offer.
2. Folks gain confidence in the market, thanks to COVID vaccines
At the start of the pandemic, homeowners who already had their homes listed quickly put things on hold (or pulled their houses completely) for fear of contracting the virus. However, now that vaccines are starting to be distributed around the nation, 50% of agents say buyers and sellers are willing to reenter the market to make deals happen.
3. Homeless becomes a big threat for millions
There are more than 500,000 million people who are living in the streets or homeless shelters around the country. Despite the eviction and forbearance moratorium, which has been extended until March 31, millions of Americans could face homelessness if they don’t get some kind of relief, be it from the federal government by way of a stimulus package or find work. This is such a problem, 40% of agents predict there will be a big increase of homelessness in their area if something doesn’t change.
4. Low interest rates are a big draw for buyers
As we mentioned, millions face economic hardship, there are still many people who need to find a new place to live. The need for housing and the currently low interest rates are a huge reason 97% of agents are saying there are people flooding their markets, despite the lack of inventory.
5. Permanent remote work may lead to more relocating
Businesses have allowed employees to work from home if their job could be done remotely, thanks to the pandemic. However, businesses are seeing that this is good for their bottom line because they don’t have to pay for an office space, utilities and so forth. It’s believed that this shift to remote work is likely to become permanent in some areas (specifically in the Pacific region) will cause more people to consider relocating to more affordable areas outside of the city.
6. COVID has made real estate agents ready for anything
Real estate agents were quick to adapt the way they do business due to COVID and safety protocols. This resulted in agents using technology like video conferencing, 3D and virtual tours, and digital closings to help their clients buy or sell houses as safely as possible. This preparedness will also be beneficial for them if the virus continues to run rampant.
7. Biden’s proposal could help first-time homebuyers
First-time buyers are already intimidated by the home buying process, but when you factor in the pressure to have a 20% down payment… It can be difficult! If President Biden’s proposal to extend the Recovery Act from the Obama administration, first time buyers could access $15,000 right away for that down payment, instead of waiting until tax time to claim the credit.
The world of real estate is tricky enough to navigate during the best of times, but when you throw in economic turmoil and an out-of-control pandemic… Boy, it’s quite overwhelming to say the least! Fortunately, by working with a trusted real estate agent and staying up to date on the current market in your area, you’ll feel a little more confident about the process.