Whether you are looking to buy or sell your home in 2021, it’s important to understand the trends and projected market of the upcoming year. Here are some of the top real estate trends predicted by real estate and business leaders.
Low Mortgage Rates
We’ve seen record-low mortgage rates in the past year, and those low rates have helped create a hot housing market. We will continue to see low rates to attract potential buyers through the remainder of 2021.
COVID-19 created a low housing inventory in 2020, causing home prices to spike. This trend is expected to continue into the new year as there is lower housing inventory coupled with higher-than-normal demand. For sellers, this is good news. Median home prices are on the rise, and there are very short sale times.
The majority of Americans are continuing to work from home in 2021 with some offices not opening until 2022. With this, space has become a top priority for homeowners. In 2021, we will continue to see people move to the suburbs where they can find bigger and more affordable space.
With low inventory and high demand, we will see a growing share of new developments in the new year, particularly for single-family homes. However, with a decrease in construction materials and skilled labor, we won’t see enough new construction to keep up with demand.
Homeowners and housing construction will utilize technology even more in the new year. Today, the average US household owns 11 connected devices. Smart homes are becoming a commodity, and sellers should be aware of making these small changes. Also, technology will be vital in engaging buyers and executing deals as we continue to operate virtually.
As the pandemic continues, virtual open houses and Zoom closings aren’t going anywhere. Because of this, photography and video will be extremely important when selling. For buyers, with social distancing, most prospective buyers can take an in-person tour of their new home, but most closings will continue to be conducted virtually.