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If there is one thing we can say about the real estate industry, it’s that there will always be a need for housing and real estate agents will rise up to meet the challenge. However, it’s completely understandable that buyers and sellers are hesitant about dipping their toes into the water, so to speak. One never knows if their job will be there tomorrow, if their finances will stay steady, or if they’ll find a house within their budget. Folks can get a little bit of reassurance by reading our breakdown of HomeLight's fourth-quarter 2020 survey in which they asked 1,054 real estate agents their predictions for 2021’s housing trends predictions.
84% of the nation’s top real estate agents are concerned about the inventory level in their market because there aren’t enough houses to meet demand. While the lack of houses is alarming for buyers, it is a good thing for sellers because that means they could see a lot of action, spend less time on the market, receive appealing offers or even experience a bidding war.
2021's Housing Predictions At the start of this pandemic, sellers got nervous and pulled their houses from the market. They feared infection and that’s completely understandable. Upon the release of the Moderna and Pfizer vaccines, 50% of surveyed agents are reporting more activity because folks are starting to feel more confident about the overall state of things. Fourth Quarter Survey
The nation already has a homeless crisis, but there are more than 20 million folks who could face homelessness if the extended moratoriums preventing evictions and foreclosures end on March 31st. People are struggling to pay rent (on average, folks are $6,000 behind in rent) and 5% of homeowners are behind in their mortgage. These numbers are troubling and 40% of agents are worried they’ll see more people sleeping in the streets if something isn’t done to help.
Interest rates have increased slightly over the past few months, but 3% for a 30-year fixed-rate mortgage is still pretty low. 97% of agents report there is an increase of interested buyers entering the market because of the low rates and who can blame them? As the economy improves, the interest rates are likely to increase.
Remote workers around the nation could be working from home permanently and if that becomes the case, real estate agents believe folks will consider relocating to more affordable areas. This is a strong possibility for those on the Pacific Coast, but so much of a possibility in the South Central region.
The pandemic has thrown a monkey wrench in how we live our lives and do business, but the men and women of the real estate agent have adapted to those changes quickly and efficiently. Instead of in-person meetings, showings, and closings, they’ve turned to technology to conduct business. They’re relying on virtual tours, digital signings and video conferences to get the deal done and these tools are very likely to be used going forward - pandemic or not.
One of the biggest challenges first-time homebuyers face is trying to save enough money for a good downpayment, typically 20% of the purchase price. In an effort to help first-time buyers, President Biden proposed to extend the $15,000 tax credit buyers could claim on their taxes, thanks to the Obama-era Recovery Act, and use that tax credit immediately to make that sizable downpayment.If you’re still concerned about the state of the real estate market in 202, you can always reach out to a trusted real estate agent for advice. They’ll be able to guide you through the process, give you some insight about how the local market is doing, and answer any questions you may have. During these uncertain times, your agent will be your best friend!
