Real Estate Agents Are Predicting These Market Trends in 2021
The real estate market has shown its resilience throughout the pandemic and even the economic downturn we experienced in 2020. But it’s completely understandable that people are hesitant about entering the real estate market and making a huge, life altering purchase when there’s so much going on.
- Supply can’t meet demand
A key factor that has a huge impact on the real estate industry this year is likely to be the lack of houses on the market. Of the real estate agents that took part in the survey, 84% indicated the inventory in their market is lower than anticipated, even if there is a growing interest in new construction builds. Although there’s a lack of inventory, 81% of real estate agents are optimistic and predict the market is going to improve as the year goes on.
- Vaccine distribution improves buyer confidence
When the pandemic began, sellers were nervous to keep their homes on the market or even to list – they didn’t want to put their families at risk of coming in contact with someone who’s infected with the virus. That is changing now that there are millions of coronavirus vaccines being administered around the nation. As a result of the vaccine roll out, 50% of agents say buyers and sellers aren’t so afraid to dive into the market.
- Foreclosures and evictions are on the horizon
(Edited) Eviction and mortgage forbearance has been extended and will end on March 31st, but 40% of real estate agents are worried that there will be a surge in homelessness once this extension ends.
- Low interest rates appeal to buyers
If you’ve been thinking about buying a house, this is a good time to do that. Mortgage rates continue to be low and 97% of agents believe more buyers will enter the market for that very reason. Just be aware that 34% of agents believe when the economy improves and more vaccines are administered, mortgage rates are likely to increase as a result.
- Works consider relocation as remote work becomes permanent
As more businesses decide to make remote work a permanent fixture of our lives, 19.8% of real estate agents believe folks will consider relocating away from cities in favor of suburban areas. In the suburban areas, they are more likely to save money, have more breathing room, and a more relaxed way of life.
- Agents are prepared for potential challenges in the future
Sellers entering the real estate market during 2020 have been severely lacking, thanks to the pandemic. However, real estate agents now have the tools necessary to tackle any more challenges COVID may present. These tools include virtual showings, digitally signing documents, and video conference meetings.
- President Biden’s first-time buyers tax credit will help buyers
Access to affordable housing in the United States is a challenge for many people and real estate agents worry that this will continue to be an issue in 2021 – especially for first-time buyers who have difficulty saving the recommended 20% for a down payment. However, President Joe Biden has proposed extending the tax credit offered by the Obama-era Recovery Act. In this proposal, first-time buyers would be able to utilize the $15,000 credit immediately to use toward that down payment, rather than waiting until tax time.
The real estate market has its ups and downs but real estate agents like to keep their eye on trends so they can best prepare themselves and their clients for what may lie ahead. If you’re considering entering the market but are hesitant to do so, don’t be afraid to share your concerns with a top-selling agent in your area.