This year has slowed many things down but the housing market certainly wasn’t one of them! And with 2021 right around the corner, experts are predicting that the market will thrive just as much next year as it has this year. What does this mean for buyers and sellers? To sum it up, it means consistently lower interest rates, a competitive market, and an increased interest in current home feature trends. Knowing that the market doesn’t look to be slowing down anytime soon, what’s on your priority list for a 2021 home?
Here is what you can expect:
A continued seller’s market
- By now it should be no surprise that 2020 was a year highly in favor of the seller. While it was a seller’s market unlike anything we’ve seen in quite some time, the upside for the buyer was a historically low-interest rate.
- The good news for homeowners planning on listing their home in 2021? Market projections are forecasting home sales to increase by up to 5.7% by the end of next year, which is a wonderful upside for potential sellers to consider. With this information, it should also be noted that newly constructed homes are expected to increase as well, due to an increase in both labor and materials, which could change the demand for an already existing home on the market.
- So, what exactly does this mean for a potential home buyer in 2021? While interest rates are still at a record low 3%, they are projected to slowly rise throughout next year. That, along with an increase in home prices, will likely cause a high demand at the beginning of the year, leading into the spring. However, don’t let this discourage you too much! 2021 will certainly be an easier year for home buyers due to an increase in homes listed on the market and an influx in the opportunity to purchase new construction.
- While the market continues to boom, it’s important to note that it is especially important for first-time homebuyers to have a preapproval in hand, as well as a knowledgeable and trusted realtor, before looking at homes if they want a chance to compete for their ideal home!
- Heading to the suburbs – with working remotely projected to last throughout a good part of next year for most, and indefinitely for many, it’s expected that both singles and families will be making a significant shift to the suburbs. This is in large part due to the fact that employees won’t have to weigh commute times as heavily as it always used to be. This is another reason why new construction is projected to increase.
- Due to this factor, sellers should consider showcasing their neighborhood coffee shops and hot spots for those who can work remotely but prefer to not be stuck at home.
- An interior feature that can be expected to be in demand due to working remotely is an already existing home office or an extra bedroom that can be turned into one. While families used to consider 3 bedrooms a standard starting point, it seems as if 4 bedrooms will be the new trend.
- For many reasons, high-quality kitchens remain a top priority – for starters, people are spending more time at home, resulting in more time cooking for their families. The more families are in the kitchen the more they are going to want a kitchen that both meets their needs and one they can be proud of. After all, kitchens have become the focal point of peoples’ homes. The other main reason for this is cost. Buyers know the price tag that often comes along with a kitchen renovation and they would rather not foot that bill shortly after buying a home.
- Plenty of room for storage – home organizing has quite possibly been the biggest trend of 2020. With this, people are quickly realizing just how little storage their current home provides or how much they depend on and will continue to do so going forward. This is an important concept for sellers to consider when staging their homes and conducting open houses – expect people to pay much closer attention to the size and layout of pantries, closets, etc.
While 2020 was a year for the ages in the real estate market, 2021 looks to be just as promising, for both sides of the process! What remains vital is making sure you have a realtor that will have your back every step of the way! For a realtor in the Triangle area, look no further than the highly recognized expertise of Masha Halpern!
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