The 2020 pandemic shook the real estate industry, but the market will rebound as the economy strengthens. If your next move is in housing, it may not be easy to decide as you don’t know the industry trends. Just because the pandemic has affected the world does not mean people will stop buying and selling homes. The advancement of technology will also make the real estate industry easy to navigate. People are purchasing homes without the need to meet the real estate agent and physically seeing the house. Highlighted below are the five trends to watch for in 2021.
- The Rise in Home Prices
Homebuyers will experience a hard time in the housing market as the prices continue to rise. While homeowners and property investors accumulate wealth, it will be difficult for homebuyers to afford houses, limiting homeownership opportunities in the future.
- Furnished Living
Investors today understand that the rental market is driven by millennials who can’t afford to buy houses but can recognize the value in furnished dwellings. It becomes a relief for people if they don’t have to invest in expensive furniture. Baby boomers are selling their houses and want to travel as they transition. They are looking for furnished apartments to rent for a short period and come back to their homes. The growing popularity of furnished apartments in Miami and other major cities is also on-demand due to business renters. Many businesses have branches in different cities and prefer paying for furnished living since they are there for a short period. With a furnished house, you don’t have to carry your furniture and appliances.
- The Shift from Urban Centers to Suburbs
More people are once again shifting from urban centers to the suburbs due to the increased prices in major cities. As many people are working from home due to the pandemic, they prefer to look for large spaces in the suburbs as they are more affordable. Home developers will need to look for ways to respond to smart home technology to upgrade homes. Such technology includes touchless control and motion sensors.
- The Rise in Mortgage Rates
The coronavirus pandemic dropped the mortgage rates due to economic destruction. As the economy continues to improve, it’s likely to grow at a rate of 3 to 3.2% in 2021. If the rise of the rates occurs, the 2020 financing boom will drastically slow down by the time we reach half of 2021 as the economy finds footing. Besides the rise of mortgage rates, they will still be attractive for homebuyers to afford.
- Increased Sales
The housing market inventory has a short supply while there is a high demand for homebuyers. This will cause prices to rise due to a shortage of housing. It’s good news for homeowners since they will get a reasonable turnover rate for their homes than before as they face less competition. As a home buyer, 2021 will be challenging since prices are likely to rise gradually. The market will be competitive due to the increased demand. Acting fast to beat the competition can help purchase a home before the prices go higher. Besides the increasing costs, there is an advantage of low-interest rates and low rental prices from landlords.
While 2021 may sound like a tough year in the housing industry, planned communities are trying to make housing affordable by offering a wide range of home prices desired by most buyers alongside amenities. Be on the lookout for available opportunities in the industry.