Spring is almost behind us and so far, the property market has managed to maintain its stead. But the real question may be what can we expect from the housing market as 2021 progresses?
We looked at data from insights from top-selling real estate agents and here are 8 trends that are shaping the future of the 2021 housing market.
Prolonged seller’s market
In February 2020, before the pandemic, only 77% of agents were experiencing a strong seller’s market. However, one year later, a whopping 97% of real estate agents say they’re experiencing a strong seller’s market and they don’t see it letting up any time soon.
Home prices will continue to increase
One of the biggest reasons it’s a seller’s market is because there aren’t enough houses to meet demand. Last year, 73% of agents said their market was low on inventory, but today? Today 91% of agents are experiencing a lack of inventory. Since there’s a lack of inventory, sellers can ask more for their houses and they’re likely to get offers coming in at or even above asking!
Bidding wars become more frequent
Housing prices are increasing organically (NAR reports that prices have increased 14.1% annually), but bidding wars are becoming more frequent as buyers fight tooth and nail for a property. These bidding wars can increase prices so much, sellers may reconsider taking drastic measures like selling to a house buying company.
Vaccine roll out is impacting sales differently in each region
Going into 2021, 50% of agents expected the vaccine roll out would increase activity on both the buyers and seller’s side. Right now, 22.2% are reporting that vaccines are affecting their market. Of course, the roll out is impacting regions differently – only 17.4% of agents in the Mountain region and 14.7% of agents in the South Central region are seeing an impact, whereas 31.3% of of agents in the Northeast and 25.5% of agents on the Pacific Coast are seeing a positive affect.
Limited vaccine roll out makes sellers plan ahead
There’s a mixed reaction among sellers regarding the vaccine. 53.6% of agents say sellers are still nervous to put their homes on the market, thus contributing to the lower than normal inventory. But, with that said, 42% of agents are reporting buyers are coming out in full force!
End of the school year may mean more people relocating
Moving during the summertime is one of the busiest times for families to relocate because it’s much easier to enroll their kids in a new district when school’s out. This year could be even more hectic because folks are tired of being cooped up inside for a year, interest rates are low, and the possibility of remote work becoming permanent means there’s no need to be in the city.
Full-time, in-person learning may affect the housing market
Along with the end of the school year driving the market, when in-person learning comes back full time, those who purchased a second home may sell their homes. They want to set down roots in a place where their kids have access to the great outdoors and more space to play.
Homeowners may still need help paying mortgages
The economy is still hurting and homeowners still need help with their bills. Even though the Biden administration has extended the mortgage forbearance until June 30th, homeowners may get desperate and sell their homes for cash to avoid foreclosure or other repercussions.