As 2021 dawns, many are hoping to make key real estate decisions this year, from selling their home to buying their first property ever. Here are some of the trends expected to shape the market from the HomeLight Top Real Estate Agent Q4 2020 survey.
Grim Potential for Foreclosures Without Further Forbearance
Let’s do the hard news first: unless forbearance for mortgage loans continues, 2021 has the potential to have more foreclosures than usual, with hardship due to COVID-19 continuing to make some homeowners struggle to make their payments. However, the hope remains that between stimulus plans and more time to find a new job, homeowners will be able to get back on track instead of going to foreclosure.
Low Interest Rates Facilitate Demand
A continuation of 2020’s slashed interest rates, 2021 promises good value for buyers who want to pay as little interest as possible while getting the homes they want. Rates aren’t likely to rise substantially this year.
Expect Home Style Demand Shifts With Continued Remote Work
Remote work isn’t likely to go away, even as some companies do need to return to the office. Instead, families who initially stuck with a non-ideal space will keep looking to buy a home with better home office space, meaning that roomy homes with good features for working remotely will be in high demand.
Less Market Volatility Expected Due to More Understood Virus
Dislike those toilet paper shortages and stock market spikes? 2021 should have fewer of them, giving more customers confidence and comfort. Industries have successfully found a rhythm and should be able to ride out the coming challenges as COVID hopefully diminishes through the year.
Biden Proposal Brings More First-Time Buyers to the Market
New President Biden has discussed affordable homeownership initiatives, including a large down payment tax credit that could get some new first-time buyers onto the market. This is good for sellers and buyers alike, making housing affordable while also keeping the market stocked with motivated buyers.
No Overnight Solutions to Low Inventory
While low inventory plagued the challenging 2020 year, it will take a while before that issue goes away. With so many people interested in moving due to so much shift in lifestyle, the market will simply take its time before there is an equitable seller and buyer demand, especially with the features that buyers desire.
Vaccine Access Expected to Facilitate Consumer Confidence
While the year still has some major question marks, many believe that greater vaccine access will lower COVID numbers, bolstering many homeowners to consider selling their homes. This should help with the inventory challenges and facilitate in-person home viewings that weren’t common during COVID-19 surges.
Overall, there is a lot of hope and exciting potential in store for 2021 in the real estate market. Take advantage of the factors that help move sales and buying processes along, and find your next dream home!