As confidence returns to real estate, the industry faces several fundamental shifts that will shape its future.
Global trends will change the real estate landscape considerably over 2021 and beyond. While many of the trends are already evident, there is a natural tendency to underestimate how much the property market will have changed since 2020.
The changing landscape will have major implications for real estate investment and development. It will increase the size of the asset pool, yet change the nature of investment opportunities. Real estate organizations will need to adapt early to survive and prosper.
While the pandemic did disrupt home sales in the spring of 2020 (which is usually considered the hottest season for real estate), the market quickly made an impressive rebound. Steve Burke, Real estate expert at Belle Property Glen Iris has reported that the surge in home sales in 2021 made up for the spring market losses.
Will we see more of the same results in 2021? How will the housing market shakeout in our current economic climate? Whether you’re selling, buying, or staying put, here are the 2021 real estate trends you need to know!
Home Prices Are Still Rising
A bright spot in an otherwise dreary 2020 was the residential real estate market. After briefly retreating at the beginning of the pandemic, home sales soared. A lack of homes on the market and low mortgage rates caused prices to skyrocket. Rising prices lifted home values, creating more wealth for homeowners. Steve Burke has reported multiple bidders at his auctions this year, something we did not experience as much last year.
Many experts are predicting another strong housing market in 2021. They are forecasting increased demand from buyers who delayed purchasing homes because of the pandemic; from existing homeowners who need larger spaces to accommodate parents working from home and children attending school virtually; and from apartment owners who are seeking to escape multifamily buildings for single-family houses to mitigate exposure to the virus. The ability to tour homes and participate in auctions will make buying a home simpler in 2021.
Growing Real Estate
With all the uncertainty behind everything that happened in 2020 and with home price growth possibly slowing down in 2021, you might be wondering if the housing market could collapse. Well, it’s impossible to know for sure, but economists suggest a housing crash is unlikely.
After all, the super-low mortgage rates are motivating buyers to enter the market, which increases demand. The only problem is there’s still a very low supply of home listings. This is keeping home-buying competitive and allowing home price growth to soar.
Since home prices have experienced rapid growth over the past few years, some buyers may be less choosy. In fact, determined ones might be willing to consider neighborhoods that don’t have easy access to highways or aren’t near a big city. If you think you live in an unpopular neighborhood or believe your home isn’t what buyers are looking for, think again. Now maybe your perfect time to consider selling.
Take Control of the Trends with a Top-Notch Real Estate Agent
Whether you’re selling or buying, you can take advantage of the current trends by partnering with a professional real estate agent. Through our extensive network, our team will match you with agents in your area. Our real estate professionals are top-performing professionals in the local market who’ve earned our seal of trust by actually caring about your financial goals.