Getting into the housing market in 2021 may feel daunting, since so much of 2020’s real estate world was rocked by COVID-19. However, the trends are actually looking good for this industry and, with the right information in hand, both buyers and sellers can take advantage of a year that promises valuable interest in real estate with fewer market shocks than last year. The Top Agents Survey from HomeLight from 2020’s final quarter offered a variety of useful takeaways from real estate agents across the country on what they anticipate for the coming year.
Continued Inventory Shortage = Sellers Market for Now
The 2020 housing market gobbled up available homes as well as new construction at a fast clip, leaving the market quite depleted. This has resulted, along with many other factors, in a prediction that the current sellers market is here to stay. It’s not a bad time to hunker down and build your down payment, but if you have a previous home to sell, the premium you can often get in the market now may help you to afford your next spot, once you find it amid the shortages.
Increased In-Person Options With Vaccine Roll-Out
Many sellers held off on selling their properties for fear that they’d get less notice if they were only working with virtual shoppers – this didn’t often hold true in practice, but this same group of sellers is now growing in their consumer confidence. With vaccines helping to increase immunity to COVID-19, the sellers who didn’t want in-person showings or to go visit potential homes they want to purchase will be entering the market this year, moving things along for everyone in the market. The vaccine is also likely to help get many Americans back on track financially, leading to greater confidence in making large purchases like homes.
Anyone Now Working Permanently Remote May Consider a Move
The shift from working in-person to working remotely already has had a major impact on housing, since many people tried to move closer to family for childcare help, wanted more space outside the big city, or for a variety of other needs associated with no longer going into an office or other workplace. As workplaces make the decision to continue remote work indefinitely or bring people back together, 2021 could see many people making more permanent moves based on a growing availability for remote work.
Potential Influx of New Homebuyers From Biden’s Homebuyer Credit
With new President Biden promising to make affordable housing a priority in his term, promises of homebuyer’s tax credits could bring new homebuyers that have never considered owning property before onto the market. This could make the market for affordable middle-class homes get hotter during the coming months and years.