2021 Housing Market Trends – The Story so Far
2020 proved to be a year with unpredictability, but as of June 2021, many cities and industries are quickly opening back up. Some are moving faster than others, and one industry that has continued to rise and rise since the pandemic began is the housing market. The migration from big cities to smaller ones kicked off when people abandoned their crowded city apartments for spacious homes with yards in the suburbs—questioning how the housing market will continue to play out in 2021? We’ve got some insights for you!
Where It’s Been
Right now, homes are being sold within weeks – if not days – of being listed. The market right now is completely for the sellers, and people are snatching up homes faster than they can get their checkbooks out. According to Zillow, homes across the U.S. spent an average of 25 days on the market in 2020. That was during the height of the pandemic. As a comparison, homes spent an average of 30 days on the market in 2019. The pandemic truly kicked off a mass migration and home-buying spree, and as of June 2021, the country seems to be in the hottest part of the frenzy. Today, homes in metro cities with heavy suburban surroundings are being sold at an incredible pace. A house in Ogden, Utah, is sold an average of 12 days after being listed. In Columbus, Ohio, it takes an average of just eight days for a home to sell. If you’re looking to sell this summer, you won’t be short on buyer options. However, heavy housing market activity comes with heavy consequences, and knowing where the market will move next will help you determine your next move.
Where It’s Going
Throughout the summer and fall of 2021, interest rates may rise but are expected to remain lower than pre-pandemic times. Right now, the housing market is still hot, and buyers continue to close on homes quickly. However, it’s not going to stay like that forever. As various industries begin to open back up and life returns to “normal,” city-living is expected to make a revival. Even now, homes and apartments in larger cities are seeing a return to life as we knew it. This should cool off the market a bit in the current popular suburban areas. Also, prices for homes right now are much higher than average, and at some point, more and more home buyers will decide to wait until the prices regulate. The market is booming right now, but it is expected to cool off enough for people to have more options on the buyers’ side within the next year, which leads to continued options for sellers as well!
What You Should Do
Whether you’re a home buyer or seller, there is some research you have to do before making a huge financial move in this wild housing market. Maybe your dream is to own a home, and you think your best chance at nabbing one is during this heavy sellers’ market. Maybe you want to sell your existing home and take advantage of high home values as many buyers put forth offers far above the asking price. Whatever your situation may be, be sure to think ahead. If you are looking to buy soon and have the money, would you have been able to get a similar home one year from now at a lower price when the markets are expected to cool off? If you are selling your home at a higher price due to demand, do you already have somewhere else to live? Because if not, then selling your home at a higher price means little if the homes you are looking at also demand a premium price before selling. The benefit essentially cancels out.
The housing market right now is a wild one, and it is recommended that you consult a financial professional, review your finances, and talk to loved ones before making a move. If you feel you are ready and have everything planned out and still need help, reach out to us! We provide lending solutions and have done so for countless customers over the years. Let the experts help you out.