As the new year opens, industry experts are busy publishing their housing market forecasts. At Evergreen, we’re keeping an eye on 2021 and what it means for our industry. Below are three trends we think are important to watch and what they mean for your business in the new year.
Home purchase demand will continue to rise. Home is more important than ever and people are reevaluating their current space. Extra space for home offices, kids learning remotely, or for new hobbies have many homebuyers wanting to move or purchase their first home.
What this means: 2020 has changed our lives and people are looking for homes to fit their new lifestyles. This could result in increased competition for homes and homebuyers should prepare by determining their budget upfront and reacting quickly to new listings (1) .
More new construction. Increasing demands for homes may result in low inventory for many markets. Low inventory could drive up home prices, making new construction homes an attractive option. Home builders may also have more opportunity as they have reduced competition with office builders and low interest rates have allowed them to purchase materials at lower costs (2).
What this means: New construction homes, especially in suburban and rural areas, may offer clients more variety and affordability in tight inventory markets. Keeping an eye on new construction opportunities could allow you to open up new markets.
Homebuyers more likely to leave urban areas
With employers extending work from home policies or making remote work permanent, many homebuyers are eyeing areas away from the office and city (2). Suburban and rural areas often offer more affordability, less density, and lower living costs.
What this means: With the ability to work remotely, homebuyers may be more willing to look outside urban areas to meet their price range. Becoming knowledgeable about suburban or rural areas with desirable amenities could help expand the selection of homes for your clients.
The forecasts predict new opportunities and we’re excited
to work with you in the upcoming year! If there’s anything
we can help with, please don’t hesitate to reach out.
1. Source: Falcon, Julia. “Despite Low Inventory, Expect a Strong 2021 Housing Market.” HousingWire, 11 Dec. 2020.
2. Source: Fairweather, Daryl. “Redfin’s 2021 Housing Market Predictions: 10% More Home Sales.” RedFin News, 15 Dec. 2020.