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/
