Top 5 Trends that will Shape the Real Estate Market After the Lockdown
The lockdown has caused unprecedented disruption to businesses. Real estate companies have been forced to make adjustments to address challenges such as organizing house tours. Lenders have also come up with more stringent rules to deal with the risks of an unstable market.
But despite these challenges, things seem to be looking up. Here are some of the top housing market trends to expect for 2021.
1. Rising Home Prices
The median home value rose by approximately 5% in the last year. According to Zillow’s data, the median home value will rise further to 7% through autumn 2021. Some cities may register a double-digit growth rate in home prices.
2. Fewer Homes for Sale
The housing supply refers to the number of homes on sale at any given time. As we usher in 2021, you can expect the housing supply to remain low.
The main reason for a low housing supply is that homeowners are reluctant to sell in an uncertain market. Homeowners are hoping to fetch better prices when the real estate industry stabilizes.
3. Mortgage Rates to Remain Steady
The average rate for a 30-year fixed mortgage is expected to remain 3% through 2021. The low rates have opened an opportunity for homeowners who want to refinance. With so many people losing their jobs and businesses, refinancing may help save money.
4. Steady Housing Demand
Statistics show 32% of people looking to buy houses are first time home buyers. But most lenders have come up with more stringent rules to manage the risks of an unstable industry. Despite those challenges, the housing demand is expected to remain steady.
After the lockdown, most people are considering investing in a stable asset. Buying a new home is an attractive investment, especially now that real estate mortgage rates are low. Again, people who have moved or are looking from major cities are expected to continue buying homes in the suburbs. This will also play a part in maintaining a steady housing demand.
5. Work from Home to Boost Home Value
The pandemic has forced most people to shift their work to their homes. As the world reopens, the trend will likely continue. More employees will request to shift their workstations to their home office. Some companies, such as Facebook, Twitter, and Square, have already announced plans to let some of their employees work from home indefinitely.
The more employees choose to work from home, the higher the value of the home. Buyers may opt for real estate properties that are in less densely populated areas. Homeowners will want a house with an office and scenic views.
6. Virtual Tours and Use of Technology
One of the biggest challenges for real estate agents during the pandemic has been organizing in-person tours. But technology has presented a solution in the form of virtual tours and video marketing.
As we usher in 2021, content marketing and social media advertising will become more crucial than ever. Real estate companies will utilize automation and AI to get targeted leads.
The housing market has faced many challenges during the lockdown. But real estate businesses are addressing these issues by using technology and adopting sound business practices. If you want to thrive, you need to make adjustments early to take full advantage of the numerous opportunities.