The pandemic has had an enormous impact on the real estate market, and the effects will be felt for a long time even once the pandemic has ended. It is not entirely clear what the short, near, and long-term impact will be, and there is a lot of confusion which is understandably causing anxiety for buyers, sellers, and realtors, but a few clear trends are emerging that are important to be aware of and will hopefully alleviate some concerns. Read on to discover the main real estate market trends emerging in 2021 and what this might mean for those involved in the market.
Low Inventory and High Demand
One of the most noticeable trends so far is that there are currently not enough properties for sale to meet demand. Many homeowners are likely deciding to stay put until the situation improves, which is certainly understandable, but equally, there are still many that are looking to buy. This is obviously good news for sellers, but for those buying, you may need to make some sacrifices, expand your search and get pre-approved as soon as possible.
Prices On The Rise
House prices are seemingly always on the rise, and 2021 is no different, particularly when demand is high. Again, this is a perk for those looking to sell anytime soon but will not be a welcome trend for buyers (particularly first-time buyers). For buyers, you will want to save as much deposit as possible, use a mortgage calculator to work out how much you can afford, and shop around to find the best mortgage for your situation. Fortunately, mortgage interest rates are low right now, which is a win for buyers and will be a big help when it comes to affording a property.
Solar Power
Another trend that is fast on the rise in real estate is solar power, with many homeowners investing in solar panels for their homes (particularly in sunny areas like Arizona). This is smart because it can help a homeowner to make enormous savings on their electricity bill, plus unused electricity can be sold back to the grid for credit. Obviously, this also helps homeowners to reduce their environmental impact, which is important in a time where this is such a major topic, and there is a lot of societal pressure. Solar panels installed by specialists like Custom Solar and Leisure will add value to properties and make a home more appealing, so there are perks for both buyers and sellers.
Demand For Home Offices
A trend that has emerged as a direct result of the pandemic has been the demand for properties that have suitable home office space. Many people have had to adjust to working from home over the last year, and not everyone has a suitable space, which can make work extremely challenging and stressful. Many will be working from home at least on a part-time basis moving out of the pandemic, so many sellers now have space for a home office as a must on their list of needs from a property.
Demand Rising In Remote Areas
Following on from this, another interesting trend to emerge as a result of the pandemic and switch to remote work has been demand for properties in remote areas rising. With many people making the switch to remote work, it means that there is less need for people to live in or just outside major cities, so many are looking to more remote areas where they might be able to find a more affordable property, get more for their money and find quieter areas to live.
Virtual Real Estate Services
It has always been important for real estate agencies to have a strong online presence with virtual tours and high-quality photographs, but this has been taken to the next level during the pandemic as a way for potential buyers to be able to view properties without actually visiting them. Online video viewings, live streaming open houses on social media, videos, and other virtual formats are being utilized as a way for people to get a clear idea of what a property is like and speaking to agents without actually visiting the property, and this will continue in 2021 and perhaps beyond.
These are a few of the main real estate trends that are emerging in 2021, which will be a unique year for both buyers and sellers. While the pandemic has had an enormous impact on the industry and in many ways, it is clear that demand is still strong, and it will be a busy year in real estate.
