All over this country, people (and businesses) have had to alter many aspects of how they navigate their lives in this “new normal.” Many industries have taken a huge hit because the pandemic and social distancing protocols have forced them to close their doors for public safety. Yet, there’s been a few industries that have fared much better than others – real estate being one of the resilient ones.
With that being said, what can we expect for the real estate market going forward? Here are some top agent insights that’ll give us a clue as to what we can expect in 2021.
1. Limited housing inventory
Even though buyers are interested in purchasing new construction homes, there aren’t enough houses to meet demand. So, if you’re thinking about selling a house and using a net proceeds calculator to see if you can turn a profit on the sale, now is the time to do it! A whopping 97% of real estate agents say their markets are on fire and seller’s hold all the chips. Not only are home prices on the rise (NAR says prices have increased by 14.1% in January 2021!)Sellers are likely to receive multiple offers, thus allowing them to wait until they have an offer they can’t refuse.
2. More people will become vaccinated
Back when the pandemic took hold of the nation (February 2020 seems so long ago, doesn’t it?), sellers and buyers alike were hesitant about entering the market. Buyers weren’t buying and sellers were pulling their homes off the market. In 2021, that’s no longer an issue as more people receive the COVID vaccine. In fact, 22.2% of real estate agents say the vaccine rollout has had a positive impact on their market. And, as the year progresses and more people get vaccinated, it’s highly likely that there’ll be a surge in activity – both selling and buying.
3. Uneven vaccine distribution impacts regional sales
Despite millions of people getting vaccinated across the nation, not every region is seeing as much success due to uneven distribution of distribution. In the Northeast, approximately 25% of the population has received at least one shot as of March 2021. Yet, the population in the South Central, particularly in small towns and rural areas, are lagging behind and the real estate market in these areas reflect that.
4. Remote work and learning could lead to relocation
2020 has been the year of quarantine and workers and students have had to resort to remote work and learning. As a result of this, it’s highly likely that folks are packing up and relocating, even during real estate’s slower seasons, although summertime tends to be the season where agents see the most action.
5. Low interest rates on mortgages
The United States’ economy remains on shaky ground, but there’s a light at the end of the tunnel. There’s been 379,000 new jobs created in February and it’s only going to get better. Despite the positive turn the economy is (slowly) taking, interest rates continue to stay pretty low. These low rates are part of the reason 94% of agents are seeing an increased number of bidding wars and 97% are seeing more buyers entering the market. However, as the economy improves, those rates will increase – it’s just a matter of when they’ll increase.
It’s nearly impossible to say for sure how the real estate market will be months down the road. Something catastrophic could occur and flip everything upside down (we’re looking at you, COVID). However, when top selling agents who really know their stuff offer insights on their market’s trajectory… You can rest assured that they’re right on the money (unless something horrible happens again).