Whether you work in real estate or are interested in buying or selling a home in the upcoming year, it’s important to understand both the current and the projected states of the housing market. Here are some real estate trends to keep an eye on for 2021.
Prices And Turnover Rate Still On The Rise
COVID-19 left the housing inventory in short supply in 2020, causing prices to spike. This trend is expected to remain throughout the winter and carry into the new year, as there is still a shortage of available housing with a higher-than-normal demand.
For sellers, this can be good news: the median home sales price is anticipated to rise 5% – 6%, and according to Norada Real Estate Investments, the turnover rate for homes is better than ever, with time spent on the market a whole 14 days less than that of a year ago. Not to mention, that sellers right now face much less competition than seen in a typical real estate season.
Real Estate Has Gone Virtual
Before the pandemic, many of us enjoyed perusing online, looking at different homes for sale in our area. But with social distancing in play, virtual formats have become a new normal, with many real estate agents utilizing live stream features on social media for open houses, and more emphasis placed on virtual tours, videos, and photographs in home listings.
While many may be reluctant to make such a large purchase without ever entering a prospective home in real life, the digital tools that many have used in 2020 are sure to stick around throughout 2021.
The Buyer’s Market Will Be Competitive
Not only are housing prices expected to continuously rise, but due to increased demand, you should expect a competitive market. So, if you want to purchase a home, chances are that you’ll have to act fast to beat out the competition.
But there are some advantages for those seeking a home in 2021, including interest rates which could dip as low as 2.9%, according to a Fannie Mae forecast.
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