With record-low mortgage rates and a sudden wave of relocations enabled by remote work, the real estate market has been on fire since 2020. With unseasonably high demand well into the cooler months, the sector also avoided the usual fall slowdown. Despite an ever-worsening pandemic, all of this happened. Meanwhile, as buyer demand continues to rise, home prices have reached new highs.
The introduction of virtual real estate viewings has only increased the industry’s profitability. However, now that 2020 has passed, many are wondering if the latest housing boom will come to an end as well. The housing market has remained solid, although with some new trends compared to previous years.
The probable long-term impacts of the pandemic on supply-demand structures across the real estate market have been assessed by several studies and real estate analysts. So, whether you’re a real estate agent, a buyer, or a seller, the latest advancements will help you achieve your housing market goals by providing a consistent driver of progress and allowing you to make better decisions.
Let’s take a look at what they are and how the real estate industry will fare in the coming months.
1. Cost and the Rate of Turnover Continue to Rise
Housing inventory was in short supply in 2020 as a result of the pandemic, causing prices to skyrocket. This trend is expected to continue, which is good news for sellers since there is still a housing shortage and higher-than-normal demand.
2. Buyer’s Market to Have More Competition
On the other hand, entering the housing market as a first-time buyer this year could be difficult. Not only are home prices projected to grow steadily, but you should also expect a competitive market due to increased demand. So, if you want to buy a house, you’ll probably have to act quickly to beat out the competition. However, those looking for a house have some advantages. Landlords have been known to reduce rental costs or even provide discounts and free amenities in order to attract new tenants. So, if you’re looking for a temporary office space or have always wanted to live in or near the capital, now might be the time.
3. Mortgage Interest Rates Will Remain Low
According to analysts, the average mortgage interest rate has been nice and low recently, and this trend will continue. If you’re a first-time homebuyer, this can help with affordability; however, you should be careful not to let this pressure you into buying a home before you’re ready.
4. The Real Estate Industry Has Gone Virtual
This is one of the most significant developments in real estate since the outbreak. All of us used to love going online and looking at various homes for sale in our region before the pandemic. However, as a result of the social distancing at play, virtual real estate site visits became the new standard. Many real estate agents now use live stream features on social media for open houses, and virtual tours, videos, and photos are increasingly prominent in home listings.
The ongoing pandemic has created numerous opportunities for developers, particularly as virtual real estate site visits have become increasingly popular. Homebuyers also realised the importance of owning a home. People have realised that having their own homes would make them feel safer and more comfortable, and as a result, they are rushing to purchase homes. The coming months may witness the emergence of a new trend, with home buying taking precedence over jobs and affecting urban planning and real estate decisions.