Of all the industries that’ve been hit by the pandemic, the real estate industry has shown just how resilient it can be – even if the economy continues to teeter on the edge. It’s understandable that people aren’t too keen on jumping into the real estate market right now, but Homelight released their Q4 2020 survey and it reveals that 81% of agents are optimistic that their market will improve.
Here’s a look at the housing market predictions agents shared for 2021.
Inventory can’t meet demand
In order to have a balanced real estate market, you need to have enough houses to meet demand. Unfortunately, 84% of real estate agents who took part in the survey said that although buyers are interested in newly constructed homes, there still isn’t enough inventory to meet demand. Not only that, but they don’t think their inventory will replenish fast enough.
Buyers are braver as vaccines are distributed
At the pandemic’s start, folks who were already in the various stages of a transaction got scared and backed out of the transaction, pulled their houses from the market, or put their plans on hold for the time being. Yet, as the coronavirus vaccines are being administered around the country, folks are feeling braver and are reentering the market with gusto.
Evictions and mortgage forbearance ends
One of the first things President Biden did when he was sworn into office was to extend the eviction and foreclosure moratorium, thus protecting folks from homelessness… for now. Once it does end on March 31st, 40% of real estate agents fear there will be a large increase of homeless people in their market, due to no fault of their own.
Buyers take advantage of low interest rates
Mortgage rates are still really low and a whopping 97% of surveyed agents say these rates are the primary reason there are more folks looking to buy a house. Unfortunately, these rates aren’t going to last forever and 34% of agents expect that when the economy improves and more people are vaccinated, the rates are going to increase.
Jobs go remote, people consider relocating
According to 19.8% of real estate agents from the Pacific region believe that when people who are currently working can do so on a permanent basis, they’ll see many people pack up and move to another location. Since they no longer have to be close to their jobs, it’s totally understandable that they’d want to relocate somewhere new and possibly more affordable.
Preparedness benefits agents for future challenges
Real estate is typically a very personal, client-facing industry. However, real estate agents needed to find ways to continue to conduct business as efficiently as possible while adhering to CDC safety guidelines. Their solution? They’ve begun relying on technology a lot more. The tools they are using include digital tours, video conferencing and digital closings and document signings.
$15,000 tax credit could be a boon for first-time buyers
President Biden released a proposal that would extend former President Obama’s Recovery Act in an effort to help first-time buyers have money for a down payment. Under this proposal, first-time buyers would be able to use a $15,000 tax credit immediately for the down payment instead of waiting until the following year to get it when they file their taxes.
Although no one can say for sure what the housing market will be like at any point in the future, it is helpful when top agents share their predictions with us. With their insight, we can best decide when is the right time for us to buy or sell!