Topic: 6 Key Trends Expected To Shape Real Estate in 2021
Many are taking comfort simply from the feeling of a new start in 2021, and reduced cases of COVID-19 alongside an effective vaccine rollout can’t help but make us feel hopeful. However, many are also asking what the impact on the housing market will be this year. Many of the indicators from HomeLight’s survey back in Q4 of 2020 of various top real estate agents still ring true and will have long-term impacts in the 2021 real estate market. Here are just a few of them.
New Administration’s Potential Boost to First-Time Buyers
The year looks bright for first-time homebuyers, who may be able to access a substantial tax credit for entering the housing market and buying a house, if the Biden administration moves forward with this proposed idea. This may contribute to an already flooded market of interested buyers, but it also increases access long-term to the ability to build equity in a home.
Greater Market Stability in 2021
2020 saw various market panics, where stocks rose precipitously and dropped rapidly without a lot of clarity as to where they’d settle out. 2021 should be a more stable year, with all the normal pressures that change the stock market but fewer of the wild unknowns associated with the start of a pandemic.
In-Demand Housing Correlates to Work-From-Home Popularity
The larger, more suburban homes that were popular in 2020 according to top real estate agents are likely to stay at the top of the list for this year. Despite some offices returning to in-person work, others are discovering that they can increase employee satisfaction without sacrificing their productivity by continuing remote work options. This means that these homes that include plenty of bedrooms and home offices are likely to continue to get lots of attention in the 2021 housing market.
Seller’s Market Persists: Low Inventory and Interest Rates
Two major issues are also likely to keep the advantages in the housing market squarely with the sellers this year, making selling as-is quite possible. One is that low inventory leftover from the biggest spikes in the pandemic is likely to persist, at least for a while, and the second is that interest rates are expected to stay relatively low, prompting homeowners and renters alike to look into their options for getting a good deal.
Watch For Foreclosures if Forbearance Ends
The challenges of the pandemic have affected many homeowners, so changes in the current forbearance legislation could prompt a rash of foreclosures this year. It’s key to keep track of when those regulations are likely to end so that people can make sure they are up-to-date on payments or make a change before forbearance ends.
More In-Person Showings With Vaccine Rollout
As the vaccine becomes more widely available, the average consumer’s confidence in their own ability to host or attend in-person showings and real estate open houses will continue to grow. Real estate agents are hoping that more sellers will jump into the market this year, given the possibility of more buzz and in-person consideration for their homes.