Real Estate Agents Share Predictions for 2021’s Housing Market

Although the nation may face severe economic struggles if things continue the way they have been for the past year, the real estate industry is doing surprisingly well. Sure, people are still leery about putting their houses on the market, but 81% of agents who participated in Homelight’s 2020 Q4 survey remain optimistic about the future.

Here’s a brief review of the housing market predictions that were covered in the survey.

1. Housing inventory is lower than expected

As you read through this list, you’ll see several factors that cause a surge in buyer activity, but the sad reality is that there aren’t enough houses to satisfy demand. Although buyers are also considering new construction homes, about 84% of agents who participated in the survey say their inventory is still too low, and they don’t expect it to be replenished any time soon.

2. Vaccine distribution bolsters market activity

At the beginning of the pandemic, homeowners who had their homes on the market started putting a hold on the sale. As you’d expect, the fear of the unknown and the possibility of contracting the virus made folks scared. But now that there are two vaccines available and millions of doses are being distributed worldwide, 50% of agents say their market is picking up.

3. A surge in homelessness is imminent

Although the mortgage forbearance and eviction moratoriums have been extended until March 31st, 2021, 40% of surveyed agents are concerned that their market will see an influx of people becoming homeless through no fault of their own.

4. Low-interest rates appeal to qualified buyers

Folks who have been pondering whether they should buy a new house now or wait, you might want to get your ducks in a row and get pre-approved because interest rates are so low. According to the survey, 97% of agents say their markets see a considerable surge in buyer activity for that very reason!

5. Folks consider relocating as remote work becomes permanent

Suppose you live in the Pacific region and have been working remotely for the past year. In that case, 19.8% of real estate agents, it’s likely that working remotely may be a permanent policy with your company, and you wouldn’t be surprised if relocating is in your plans. Why wouldn’t you? If you can do your work from home and live in an expensive area, you could save a lot of money by moving to suburbia! 

6. Real estate agents have the tools to tackle future challenges

We’ve all had to figure out various ways we can continue to live our lives while keeping ourselves and others safe from the virus. Real estate agents, in particular, have had to adapt the way they conduct business, as it is typically a very personal industry. Instead of working closely and in-person with their clients, they’ve relied heavily on technology to get things done. Should there be any more challenges in the future, they’ll have the tools necessary to conduct business as safely and effectively as possible.

7. $15,000 tax credit could be a godsend for first-time buyers

Saving up tens of thousands of dollars for a down payment is quite the feat, especially if you’re a first-time homebuyer. Fortunately, President Biden made a proposal that would extend the Recovery Act. This extension would allow first-time buyers to immediately use the $15,000 tax credit toward their down payment instead of waiting to get the credit when they’d file their taxes the following year.

The real estate industry is a fickle beast, but real estate agents do their best to stay on top of market trends. In doing so, not only will they be ready for whatever lies ahead in their market, but they can also answer any questions their clients may have, therefore making the home buying (or selling) process a little less stressful.