Housing Market Trends to Watch in 2021

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 revaluating 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, www.housingwire.com/articles/even-with-low-inventoryexpect-a-strong-2021-housing-market/

2. Source: Fairweather, Daryl. “Redfin’s 2021 Housing Market Predictions: 10% More Home Sales.” RedFin News, 15 Dec. 2020, wwwredfin.com.cdn.ampproject.org/c/s/www.redfin.com/news/housing-market-predictions-2021/amp/