Industry Pro’s say to be on the lookout for these trends in the new year.
What topics are on the minds of top real estate professionals for 2021? HomeLight’s Top Agent Insights report identified key trends expected to affect housing the most in the new year.
1. Inventory shortages
As you may know, inventory was at an all time low this past year and remained lower than expected towards to end of 2020. The National Association of REALTORS® reports that inventory levels in November were down 22% compared to a year ago.
2. Widely distributed vaccines to boost consumer confidence
50% of agents said that a widely distributed vaccine could encourage more sellers to list their homes and help offset inventory challenges. The vaccine also could help businesses reopen fully and give more Americans added job security and the confidence to enter the housing market.
3. Home foreclosures
40% of real estate agents believe that the end of forbearance and stimulus plans this year could cause an increase in foreclosures in their markets. However, growing home equity may help homeowners sell in a strong market if they are facing foreclosure.
4. Low interest rates will continue to drive demand
97% of agents said that low mortgage interest rates increasing buyer demand in their markets, the HomeLight report notes. Sixty-eight percent of agents reported that their renter clients decided to speed up their plans to purchase a home, 66% said current homeowners opted to trade up faster, and 46% said older adults decided to downsize sooner due to the low rates.
5. Remote work will increase moves
Nearly 15% of agents said the shift to working from home could have the biggest impact on the real estate market in 2021. “Many employers will likely give the final word on which jobs are to become permanently remote in the coming months, which could trigger another round of relocations,” the HomeLight report notes.
6. Affordability changes
37% percent of non-homeowners cite down payment as one of the biggest obstacles to homeownership. However, 55% of the real estate professionals surveyed by HomeLight said they were in support of President Biden’s proposed $15,000 down payment tax credit for first-time buyers. The tax credit—which, as proposed, will be able to be used at the time of purchase—has been proposed as an extension of the Recovery Act’s temporary tax credit.
Source: Realtor Magazine
