Topic: 7 Key Trends Expected To Shape Real Estate in 2021
While there was a lot of anticipation for 2021, now that it is here, you might be wondering what comes next, especially if you are looking to buy or sell a home. The COVID-19 pandemic has created some unprecedented real estate trends to be aware of, and the experts at HomeLight polled more than 1,000 top agents across the country to see what they are expecting in their markets. Here are seven of the key trends that will shape real estate in 2021.
We have good news for sellers. Across the nation, realtors are pointing to what’s known as a seller’s market — when there is not enough supply to keep up with demand, and bidding wars and higher prices than usual are the norm. If you are a buyer, however, you may want to weigh your options and take a wait and see approach.
Bidding wars are a trend that may be here to stay, according to the agents that were surveyed. In Q4 2020, nearly 40 percent of agents said that bidding wars were at their peak, a 4 percentage point increase from Q3. Meanwhile, 46 percent reported that bidding wars were still on the rise in their markets. Again this is good news for sellers entering the market in 2021 who can expect higher prices, but may give buyers more than they bargained for.
Vaccines will mean more moves
As people get vaccinated for COVID-19 and return to a sense of normalcy in their lives, more people will be ready to see homes and move forward with buying. In 2020, virtual showings became the norm, and many people put their plans to move on hold. Headed into 2021, half of agents said that a widely distributed vaccine would encourage more sellers to enter the market.
A move from virtual to in-person showings
Agents, buyers, and sellers have adapted to this virtual world, and will continue to market homes and show them this way in 2021. But as a vaccine becomes readily available, agents predict that there will likely be a move back to in-person showings.
Low mortgage rates
Low mortgage rates are a major advantage for those who are looking to buy a home in 2021. In fact, in Q4 2020, 97 percent of agents said that low mortgage interest rates were boosting buyer demand in their markets, up from 70 percent in Q4 2019.
The pandemic has created economic challenges for people across the country, and agents noted that affordable housing would continue to be on buyers’ minds this year. In the survey, 40 percent of agents said the end of forbearance and stimulus plans could lead to more foreclosures on the market.
Home upgrades are on trend for 2021, as people continue to spend much of their time at home, across many parts of the country. Some of the most appealing features that agents see on buyers’ wish lists are full outdoor kitchens, as 46 percent of agents found, and retractable awnings as 34 percent of agents reported in the survey.
While these are some trends to watch, the best strategy is to work with an agent who can advise you about what’s happening in your market. As a vaccine rolls out, the market will continue to shift but you can be ready for it.