Real estate has shifted from the COVID-19 pandemic with a hot seller’s market, with increased demand as more people are looking to move and mortgage rates are at record lows, coupled with limited supply. The real estate experts at HomeLight uncovered some of the hottest trends shaping real estate in 2021, with 7 key insights that can help buyers and sellers stay informed as they make their next moves.
There are a lot of factors that have led to the seller's market, and one of the major ones is low inventory. In Q4 2020, real estate agents overwhelmingly said that inventory is lower than they expected, with 84 percent of them noting that shift, up from 78 percent in Q4 2019. Moreover, the National Association of Realtors reported that inventories were down 22 percent year over year in November 2020.
Vaccines will mean more moves
In 2020, buyers and sellers were hesitant to take part in in-person showings, however, one of the trends that is expected to take hold in 2021 is that a widely available vaccine will make people more comfortable with showings. Moreover, headed into 2021, half of agents said that a widely distributed vaccine would encourage more sellers to enter the market.
While there is a strong seller's market at play in 2021 there is also an economic shift happening, and 40 percent of agents believe the end of forbearance and stimulus plans could lead to more foreclosures on the market.
Low mortgage rates
In Q4 2020, 97 percent of agents said that low mortgage interest rates were boosting buyer demand in their markets, up from 70 percent in Q4 2019. Mortgage rates dropped consistently throughout 2020 and during the week of Dec. 17 they hit a new record low of 2.67 percent for an average 30-year fixed mortgage.
Changing lifestyles for remote work
The shift to working from home has people changing how they are living. In the survey, 14.5 percent of agents said that working from home will have a major impact on the real estate market in 2021. Some of those trends equal remote work options spurring people across the country to move to milder climates or to spend more of their time in second homes.
Selling in the virtual world
In 2020, agents, buyers, and sellers had to shift their strategies to virtual showings, as COVID-19 cases surged across the country. However, after several months of new protocols, 2021 is expected to stay on track with showings, even virtually, as everyone is settling into this new way of finding a home.
In a Q3 2020 post-election survey, over half of agents from HomeLight said that access to affordable housing and homeownership tax breaks would be the top issues to address in 2021. As a follow-up, respondents were asked which affordable housing proposals from President-Elect Joe Biden’s housing plan they believed would be most impactful to their local community, with 55 percent saying they were in support of Biden’s $15,000 down payment tax credit for first-time buyers.
Buying or selling a home in 2021 comes with challenges and factors to consider that are unique to the post-COVID-19 world. Staying aware of the trends and working with a top real estate agent is the ticket to moving on your real estate goals, whatever they are.
Contact the Boca Raton real estate experts from The Pearl Antonacci Group at Compass Florida for help buying or selling a home in and around Boca Raton, Florida.