The COVID vaccine is making its way throughout the country and there’s hope that normalcy is on the horizon. For the real estate industry, that could mean this strong seller’s market could last well into 2021. According to HomeLight’s 2021 Q1 survey, 42% of real estate agents are in a market where there’s a large increase in demand for housing because of the vaccine, but 53.6% of them state sellers are still hesitant to list their homes.
If you’re in a situation where you want to sell your house, now would be a great time to do so. But, before you do, here are a few insights from top agents about the future of the real estate market.
Housing demand is up, up, up!
All over the country, the number of houses currently on the market simply cannot meet demand. Many markets are experiencing a significant housing shortage and it doesn’t seem like that’ll change any time soon. Buyers are flooding the market partly due to the low interest rates on mortgages, although they did increase slightly over the past few weeks.
Housing prices increase as bidding wars become more common
Housing prices have increased steadily over the years (14.1% increase annually according to NAR) but that’s not stopping bidding wars from breaking out. Incredibly, 94% of real estate agents are amazed by how intensely buyers are trying to outbid one another on a home.
For a seller, a bidding war means the house will net them a higher profit, which is definitely an exciting development. However, if you’re a buyer, you’re going to have to be prepared to pay more for a house than you would if it were a cooler housing market.
Homes are closing faster than ever, but at a cost
Along with bidding wars, real estate agents are seeing offers that have left out important contingencies. In an effort to get their offers accepted, they’re choosing to skip the home inspection (which is rarely, if ever, a good idea), they’re willing to pay all of their closing costs (sometimes buyers can negotiate with the seller to split the cost), and are trying to be flexible with their closing dates.
If you don’t have the time to wait for a traditional sale, you could opt for using a house buying company to get that quick sale. Just be aware that if you use one of these companies, you’re probably not going to get as much for the property as you would if you sold it through a real estate agent.
Remote workers consider relocating to the ‘burbs
Businesses around the country have had to rethink how they conduct business, if at all. Many corporations (40 to 60%) have allowed much of their staff to work from home if their duties allow for it. What’s interesting is that up to 30% of people working remotely could do so on a permanent basis come 2022.
If this does become a permanent policy, remote workers who have the ability to continue working from home could consider moving away from the large cities in favor of the suburbs or even rural areas. This shift could shake things up significantly because there may be more homes for sale in cities and a further decrease in rural and suburbs already shrinking housing inventory.
2021 is a seller’s market golden hour
The current state of the real estate market leans heavily in a seller’s favor and it’s likely to last much longer than that. People who bite the bullet and decide to put their houses on their market are in a great position because it’s highly likely that their homes would receive multiple offers, they’d get offers above asking, thus making them more money, and closing could happen a lot faster than before. All in all, it’s a great time to be a seller!