With millions of doses already out and many more on the way, the news regarding such efficacious COVID-19 vaccines has been prompting hope in many Americans for a return to some of the world we knew before 2020. The 2021 real estate market stands to benefit from a surge in consumer confidence that will manifest in a few different arenas based on the slowing spread of COVID-19. After HomeLight asked top agents what they thought was in store this year, there are some practical takeaways to influence your understanding of the 2021 housing market.
More Homes on the Market
Overall, the inventory that has been artificially ‘locked up’ this year will begin to open up, it seems. Many people held off listing their homes for sale due to worries about exposure in the real estate process, thinking that it’s harder to get a competitive offer without in-person showings but having those showings can create a COVID transmission possibility. With the lowering risk of transmission due to widespread vaccination, more sellers will be ready to list, hopefully easing the intense competition for most listings these days.
More Options for Showing Homes In-Person
In-person showings have been replaced since early 2020 with extensive virtual open houses and 360 video home tours, but many people have missed the easy investigation they can do in an in-person showing or open house. With vaccination rates growing, it will become safer and safer to attend these events and choose your dream home by actually walking through it. That being said, the many virtual tools are likely to stay active, since families that need to move to an area before they can see homes in-person really benefit from the added detail these tools provide.
Business Growth Could Yield More Financial Stability, Prompting More Buyers to Jump In
Vaccination will hopefully allow for increased capacity in all manner of businesses, helping many struggling sectors to rebound. This growth should be helpful for getting prospective buyers back on track, especially those who always had the down payment ready but were worried that a pending furlough or job loss could jeopardize a home ownership journey. These buyers will be entering the market more with the vaccine roll out and greater financial stability.
Overall Economic Growth Could Speed Development of New Construction In The Coming Years
While this trend may not arrive in early 2021, the economic growth generated by the full roll out of the vaccine should prompt building developers to launch new projects and pursue those they already had going in 2020. While some developers paused or slowed house construction due to economic uncertainty, others simply faced supply challenges due to the pandemic, and both of those situations should improve in 2021.
Overall, the vaccine’s roll out spells a better year for real estate in 2021 after what was actually a rather good year for the industry. Pay attention to local trends in addition to national ones, and keep your eye out for the right time to sell or buy.