Wow, 2020 was a challenging year. With so much that happened throughout the year, you might be wondering how it will impact real estate trends in 2021. How will the housing market shake out in our current economic climate? Whether you’re selling, buying or staying put, here are the 2021 real estate trends you need to know!
1. Slim Pickings
Okay, this is probably the hardest real estate trend to swallow—so brace yourself: Inventory has been incredibly low. There just weren’t enough houses for sale over the year to meet buyer demand. But don’t worry, we’ll walk you through what to expect if you enter the market.
What Slim Pickings Mean for Buyers
Low inventory means you need to be on your toes when you go house hunting. Expand your search. What if the location where you’re planning to buy is too competitive? You might be surprised at the gem you can find in a less popular neighborhood. Working with a real estate agent who really knows the area is the best way to find a home that fits your budget and lifestyle. Get preapproved ASAP. Getting preapproved for a mortgage before you go house hunting is a must in any market. But in a market with such a limited home supply, not doing this legwork ahead of time gives a preapproved buyer free reign to swipe the home you want right out of your hands.
What Slim Pickings Mean for Sellers
Low inventory means low selling competition! You can probably expect to see offer letters flooding your mailbox the same way Hogwarts sent Harry Potter his acceptance letters. Since your home will be one of the (relatively) few listed on the market, you could be in the driver’s seat. So, enjoy possibly picking the best offer and moving at a pace that best suits your timeline. But after your home is sold, you probably won’t be in the driver’s seat anymore (if you’re buying again). So, decide on plans for your next home before you sell.
2. Home Prices Are Still Rising
What Higher Prices Mean for Buyers
If you’re going to buy a home in this expensive market, you absolutely must find out what you can really afford. Commit to staying within that budget amount no matter how much pressure you feel watching competitors pluck good homes off the market.
What Higher Prices Mean for Sellers
A nice profit may be on the horizon! And that’s great news because you’ll really want that extra money when buying your next home. To get the best offer for your home, work with an experienced real estate agent who really knows your local market. And be sure to wait for the right offer. Some buyers may try to gut punch you with a low number. If you aren’t in a hurry to move, wait for an offer that gives you the most profit. Remember, the less desperate person always has the upper hand when negotiating.