Three Predictions for the Real Estate Market in 2021

In a normal year, the real estate market sees an uptick in new listings and total sales during the spring and summer (March-June) and a steady decline in those same figures in the fall months (September-December).

Obviously, though, 2020 wasn't a normal year, and the real estate market proved anything but predictable. Despite continued lockdowns, stay-at-home orders, and social distancing guidelines, we've yet to see any signs of a slowdown.

So, predicting what's to come is a bit more of a challenge than in previous years. But here's what we believe is in store for 2021.

Buyer demand will remain strong

Pent up homebuyer demand from the lack of buying and selling from March through June and greater interest in relocating out of urban environments led to strong buyer demand in the latter half of 2020.

As we move further into 2021, it's likely that buyer activity will remain strong, as those motivations are unlikely to dissipate this year. Homesnap agents have reported that a substantial amount of homebuyers are still looking for properties in more rural areas outside of major city limits, as they're seeing the appeal of a more spacious suburban lifestyle, are no longer commuting to the office, and want to be closer to family.

Inventory will likely increase

Despite increased buyer demand in 2020, many sellers were hesitant to put their homes on the market and move during the pandemic. This, in turn, led to higher home prices.

As home prices continue to rise and vaccines assuage the fears of many of these would-be home sellers, we'll likely see many homeowners, tempted by what they could earn from their property, place their house on the market. Furthermore, many home sellers who would have likely moved in 3-5 years' time—for example, soon-to-be empty nesters—are likely to take advantage of record-high home prices and move up their selling timelines.

New agents will continue to enter the market

2020 brought a record-breaking number of new real estate agents to the industry. As home prices continue to rise and buyer demand remains high, it's likely that more and more Americans will enter the real estate profession in 2021, hoping to cash in. This trend will likely continue until home prices and buyer demand fall and restrictions and shutdowns stemming from the pandemic end.

To view the original article, visit the Homesnap blog.