Last year was interesting for a lot of reasons when it came to the real estate market. Despite the uncertainty caused by the COVID-19 pandemic, home values are higher than they have been in years. Furthermore, demand is at a high, making it a seller’s market.
Through the first quarter of 2021, we are seeing a few trends but what will the rest of the year look like? Here are a few real estate predictions for 2021.
Moving Away From Cities
More and more people are moving out of big cities and out to the suburbs. The reasons for this are two-fold. For one, you generally get more bang for your housing buck the further that you get away from the city.
For two, 2020 saw a massive increase in remote working. With positions that move remotely full-time, there is no longer a need to be right in a large city area. That changes the flexibility for some homebuyers.
Demand for More Space
Building off of the remote comment from above, there is an increased demand for more space at home. People are spending more time at home than ever, both for personal and work reasons. For that reason, homebuyers are looking for more space so that they can work, live, and play in greater comfort.
That, in tandem with the major cost differences, are why so many are migrating out to the suburbs and away from the city.
Interest rates are as low as they have been in years. Coupled with that, the desire for more stability, and the need for a larger space, there are more buyers than there have been in recent years.
All of this means a much more competitive real estate market throughout 2021. The demand is there but the available offerings really aren’t changing. That means a tougher go for homebuyers. We may also see a spike in home values given that bidding wars will become more prevalent as homebuyers compete with one another for the homes that they desire.