HomeLight released their Q4 2020 survey and the surveyed agents had some pretty reassuring housing market predictions for 2021.
Inventory won’t meet demand anytime soon
There are plenty of eligible buyers entering the market, but there simply aren’t enough houses to meet that demand – even though there is a growing interest in newly constructed homes. 84% of surveyed agents say that their inventory is much lower than they’d like, but 81% of agents went on to say that they’re optimistic for the future.
Buyers feel bold as vaccines are distributed
At the start of the coronavirus pandemic, sellers were pulling their houses off the market or holding off listing their houses all together. Understandably, they didn’t want to risk infection. About half of the surveyed real estate agents are seeing more activity in their market as millions of coronavirus vaccines are being distributed all over the country. being administered around the nation.
Millions may face homelessness in the near future
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.
Buyers are taking advantage of low interest rates
If you’ve been thinking about buying a new house, you may want to do so relatively soon. The national mortgage rates are still pretty low and it’s because of the low rates, 97% of agents are seeing a surge of buyers entering the market. It is important to note that 34% of agents expect the rates to increase as the economy improves and as more people become vaccinated.
Remote work may lead to more relocations
Businesses are leaning toward permanent remote work and as a result, cities (particularly on the west coast) may expect an exodus. In fact, 19.8% of agents in the Pacific region are saying suburban areas are gaining popularity simply because there isn’t a need to travel into the city for work anymore. Plus, suburban life can save a homeowner quite a bit of money!
Real estate agents are prepared for anything
The coronavirus has made everyone figure out new ways to go about their lives, this is especially evident in the real estate world where it is a very personal business. Thankfully, real estate agents are quick on their toes and have adapted their business practices to give their client the best experience possible while still maintaining safety protocols. It is because of this quick thinking that they have the tools necessary to tackle any future challenges the virus may present.
First-time buyers tax credit could help buyers
Americans have always had difficulty finding affordable housing and that is true for first-time buyers because saving enough money for a 20% down payment isn’t that simple. To help offset this challenge, President Biden has proposed extending the Obama-era Recovery Act so that first-time buyers can access the $15,000 tax credit immediately for their down payment instead of waiting to tax time the following year to claim it.
The real estate market may have its ups and downs but real estate agents are always watching the real estate market trends so they can provide their clients with useful advice and information. If you’re still worried about entering the market, don’t hesitate to ask a top-selling real estate agent in your area for guidance.
