At the beginning of 2020, experts predicted that the housing market of the year will experience a flat home price hike, maximized mortgage rates and tight first-time buyers inventory.
We are all aware of what occurred next: the Coronavirus Pandemic.
2020 taught a valuable lesson when it comes to expecting the unexpected, the “new normal” has been adopted even by the housing market. We have seen some trends in the last couple of months, alongside certainty with regards to the COVID-19 vaccine availability, and offering data points to make the right 2021 housing market predictions.
Here are a few things you should expect to see if you want to buy or sell a home in 2021.
1. Price and Value of Homes will continue to grow — for now
A research conducted by CoreLogic, a property analytics firm suggests the price of homes in the nation hit a 6-year high at the end of the third quarter with a yearly increase of 6.7 percent. A couple of states also saw more significant increases — with location such as Idaho recording up to 12% rise, Arizona and Maine (both about 10 to 11 percent). Even the states like New York that were hit the most during the first COVID-19 wave recorded up to 15% rise.
What To Do
In a situation whereby you plan on selling, it is best if you start listing as soon as you can.
2. There’ll be more Construction Occurrence
Respective of the state regulations on COVID-19, several construction projects had to halt. New construction inventories were affected by this alongside residential-commercial mixed-use projects created for the revitalization of several neighborhoods. Housing began to pick up in October and this denotes that 2021 plans will continue where they left off last year.
What To Do
The trend of new construction projects will fall into 2 categories, age 55+ and luxury developments. In case your house is in an area with a more “active adult” demographic or on the luxurious end, and you want to sell it in 2021, expect some competition to be presented by new construction works.
3. The Remote Workplace is Likely Here to Stay
Even though a couple of industries plan to go back to their offices, several others realize that it’s easier to have a virtual workforce. If you are located close to downtown core office parks where stylish start-ups usually excel and other aspects once given the commutability prize, there’ll likely be less request if these brands go remote fully. If you are in a city close to shopping areas that used to thrive, the economic slowdown will likely result in several retailers leaving the region.
What To Do
The remote or virtual workforce has also altered the requests of several potential buyers, so you’re likely needed to adapt to stage rooms for an appeal to the new norm. Now, creating an office at home is necessary, and you can also consider Zoom sightlines, utilities such as the internet or cable are scrutinized, and you can also add a bonus like smartphone features.
Nobody has a precise answer to what the future holds, but we’ve got the experience and insight for developing a distinct plan for you.