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2021 Real Estate Trends to Watch

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2021 Real Estate Trends To Watch

By Holly Shuffet

Here are some real estate trends to keep an eye on for 2021.

 

Prices And Turnover Rate Still On The Rise

 

COVID-19 left housing inventory in short supply in 2020, causing prices to spike. This trend is expected to remain throughout 2021, 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 sale 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 14 days less than that of a year ago. Sellers now face much less competition than seen in a typical real estate season.

 

The Buyer’s Market Will Be Competitive

 

Entering the housing market as a home buyer could prove challenging in 2021. Not only are housing prices expected to rise, but due to increased demand, you should expect a competitive market. If you want to purchase a home, chances are you’ll have to act fast to beat out competition.

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. There have also been instances of landlords lowering prices on rental spaces or even offering incentives to draw in new tenants. So, if you’re looking for an office space or have always dreamed of living in the city, now might be the time to make that move.

 

People Are Flocking To Suburbs

 

With the increased necessity of working from home for many Americans, space has become an attractive commodity – particularly affordable space. Because of this, suburban areas – which were already seeing an upward trend of buyers pre-COVID-19 – are more popular than ever.

 

Real Estate Has Gone Virtual

 

Before the pandemic, many of us enjoyed perusing different homes for sale in our area online. But with social distancing in play, virtual formats have become the new normal, with many real estate agents using livestream features on social media for open houses and placing more emphasis on virtual tours, videos and photographs in home listings.

While many may be reluctant to make such a large purchase without entering a prospective home in real life, these digital tools used in 2020 are sure to stick around in 2021.

If you’re a real estate professional, consider brushing up on the digital marketing methods used on social media and real estate websites.

 

FAQs

 

Will the housing market crash in 2021?

 

A housing market crash or recession is highly unlikely in 2021.

The initial impact of quarantine lockdowns has seen gradual improvement as favorable interest rates have boosted home buyer confidence. According to Norada Real Estate Investments, even though we’re facing another spike in COVID-19 cases, the most negative impact we’re likely to see is a short-term decline in rental units before reentering a period of steady recovery.

 

Will home prices drop in 2021?

 

Due to high demand and low inventory, the 2021 real estate market will favor sellers for the most part. However, a Haus forecast has predicted a drop in home prices between 0.5% – 2.5% from October 2020 to July 2021.

 

The Bottom Line

 

Although 2020 was tumultuous and 2021 may seem daunting, it’s important to keep in mind that the housing market is leading our economy toward recovery, and we shouldn’t expect an oncoming market crash.

 

To get connected, visit RocketPro.com/RealEstate.

 

 


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