It’s no secret that COVID-19 has affected nearly every aspect of our daily lives: masks worn everywhere, 6 feet between yourself and others and sanitizing everything multiple times a day. Something that seemingly has not changed much at all is the real estate market; prices of homes are still high as ever and buyers are still eager to purchase new homes. In this post, we’ll be looking at some of the trends emerging in real estate in 2021 as well as how the pandemic has affected the housing market as a whole.
The largest of the foremost trends we are currently seeing is the lack of variety on the market. This includes fewer listings and more homes that have similar architectural designs, which may make some buyers heads spin. However, this trend moves in favor of real estate agents because this means less competition on the market, bringing more buyers to their listings. In addition, this allows agents to pick the highest offer of the bunch as more people will be flocking to the same listings. Another trend we’re seeing is the pricing of homes staying stagnant, if not growing exponentially. According to a study done by Forbes Magazine done in November of 2020, the market rate for homes has actually gone up 15%, despite the pandemic. This fact coupled with the amount of homes on the market is a double win for real estate agents looking to land a large sale.
One might look objectively at the pandemic and wonder how this event has impacted the real estate market. Just one of the ways it has done so is the way people are now looking for a home rather than just a house. We all want to be able to come back from a long day and settle into a comfortable, warm place that is all our own; the pandemic has only magnified this want in many people. The average home now needs to become a triple threat for many: school, office space, and living space. For the foreseeable future, we are going to be limited in our reasons to leave the house, which means that the house has to be multi-use.
We are predominantly seeing strong growth across smaller cities and suburbs near larger cities. This is more than likely due to the accessibility of these homes and their location in relation to shopping centers, local entertainment and nightlife. Most homeowners own vehicles but some rely on local transit, which these homes are close by to. There is lots of demand for newer, more modern housing showing up in the ratios as well, people wanting the latest and greatest for their new homes. Many businesses are also seeking to expand in order to keep up with the current housing boom, maximizing their profits and consumer reach.
While the pandemic has no end in sight for now, we can already see the effects it’s had on our lives as a whole. We cannot control what happens next, but we can make the most of the hand we’ve been dealt, especially when it comes to new homes. We hope that everyone is staying healthy, safe and finds the perfect new home for themselves and their families!