Even though the rollout of the Covid-19 vaccine has left much to be desired, it’s arrival could still have an effect on the housing market in 2021.
According to Realtor.com the 2021 market will remain hot and active, but it will lose some of the speed and urgency that we saw in 2020. The prediction is that the market will settle at somewhere between the 2020 hyperactivity and the market before the pandemic.
It has been said before that the expectation is that there will be more inventory on the market this year, but that does not mean there won’t still be a shortage and it doesn’t mean it’s happening overnight. The bigger release of inventory is likely to happen closer to the end of the year according to Ali Wolf (the chief economist at Zonda).
Many baby boomers on the path to retiring and downsizing, however, due to their health risks, have held off putting their homes up for sale, once the vaccine becomes more widespread and more trusted by the general public this is likely to change. Over the next 10 years millions of baby boomers are retiring, and many of them will want to downsize their homes. This shifting of property from retirees to young families will take place, it’s just a matter of time.
Even more good news for buyers is that a million single family homes could be built this year, according to Robert Dietz from the National Association of Home Builders.
It looks like buyers can either be competitive now and take advantage of the low mortgage rates or be patient and have more options.
Sellers, however, may not always be able to enjoy the current state of the market. Right now, sellers are getting higher bids and faster selling timelines because inventory is so low, once that changes, the current seller’s market will start to fizzle out.
Investors have their own areas of focus as the shift to bigger suburban areas has left an opening to purchase undervalued properties in busy (pre and post pandemic) urban areas. These areas will not always be so deserted. Once that happens and the pandemic is over, urbanites will move back into the hustle and bustle and the renter’s market will boom again.
Whether you are the impatient buyer, the unsure seller, or the investor looking for a diamond in the rough, Amin Vali can help you make a plan and execute it to perfection.
We hope your year has been happy so far.