Millions of COVID-19 vaccines have been distributed and half of the adults in the US have received at least one dose and as more get fully vaccinated… Well, life could be returning back to normal – or at least as close to normal as we can get given the circumstances. Many aspects of our lives are going to be shifting and those who have put off selling their houses are in a great position to do that now.
According to real estate agents who participated in HomeLight’s 2021 Q1 survey, it’s a strong seller’s market in their area. They believe vaccine rollout will have some interesting effects on the market. Here’s what they predict the real estate market will be like as 2021 progresses.
1. It’s going to be a seller’s market for a long time
If you look at the real estate market at the start of the pandemic, the market is definitely picking up steam. Buyers are coming out of the woodwork and 97% of real estate agents are elated by the increased activity; 92% of agents say their market is only going to get better in the upcoming months. So, if you’re thinking about selling, now is the time to do it!
2. Increased demand will increase housing prices
The reason behind this booming seller’s market is that there aren’t enough houses to meet buyer demand. 91% of agents say inventory in their market is lower than expected and it’s because of the heightened demand that prices are on the rise. Over the course of the next six months, 73% of agents predict the prices will continue to increase.
3. Buyers are taking advantage of low mortgage interest rates
The driving force behind increasing buyer activity is attributed to low mortgage interest rates. Mortgage rates may not be at historic lows anymore, but they’re still low enough to appeal to buyers. As more buyers get pre-approved for loans, the housing inventory is going to continue to decline and 94% of agents worry that the shortage is only going to get more severe.
4. Markets are affected differently based on vaccine distribution
Vaccines are being distributed across the nation, but not all areas are getting their promised doses. On top of not receiving their promised doses, these smaller communities are being bombarded by out-of-towners who cannot get appointments in their own area. In doing so, small-town residents are stuck waiting for more vaccines and the real estate market in those areas are seeing slower recovery.
5. Influx of buyers once school ends
We don’t know if companies are going to make remote work a permanent aspect of their employee’s jobs, but real estate agents believe that if it does, people are going to consider moving to a new, less dense area. The agents also believe that once school is out, parents are more likely to relocate because it’s easier to transfer to a new school district during the summer than in the middle of the year.
Although there’s no way of knowing what exactly the future holds for real estate, seasoned real estate agents have a pretty good idea about how to predict what’s to come. Life is always changing and unless we encounter another catastrophe, these predictions are pretty solid.
Of course, if you’re worried about the local market in your area because you’re going to be entering it soon (whether to buy or sell), you should always consult a top real estate agent for their advice and insight.