Covid-19 has caused unprecedented changes in almost every industry, which has been especially true of the housing market. At the beginning of the pandemic, the health crisis had a severe negative impact on the economy, negatively affecting housing.
However, this all turned around as mortgage rates reached an all-time low and available listings reached an all-time high. As a result, the housing market recovered surprisingly well, but the extreme shifts are causing many to question where the housing market is headed in 2021 and beyond.
There are many 2021 predictions and trends for the housing market that we are already beginning to see in action. Being aware of these trends can help people navigate the housing market successfully in 2021. We will discuss the future of the housing market beyond 2021 in further detail below.
2021 Predictions And Trends For The Housing Market
If you want to know where the housing market is headed in 2021 and beyond, the 2021 predictions and trends for the housing market are essential. Understanding the 2021 predictions and trends for the housing market can guide you to make intelligent investment decisions.
Listed below are some of the 2021 predictions and trends for the housing market that indicate where the housing market is headed in 2021 and beyond:
- Surge In Pricing & Availability – A rise in house pricing and availability has been one of the only positive things to happen to the economy since the Covid-19 hit. Prices for existing homes surged 17% in March 2021 compared to the previous year. This is a great opportunity for homebuyers and homeowners; however, it has caused a housing boom.
- Boom & Bust Market Is Not Sustainable – One of the leading indicators of where the housing market is headed in 2021 and beyond can be illustrated by the boom and bust cycle that we saw in 2008. While the skyrocketing home sales seemed incredible at the time, they didn't last. Unfortunately, economists warn that a similar fate might be destined for 2021.
- Cracks In Market Are Already Beginning To Show – According to new data from the U.S. Commerce Market, sales in single-family homes already saw signs of decline in May 2021. Unfortunately, this indicates that the housing market's future beyond 2021 will likely follow suit if we continue down this road.
- Housing Stocks Can Still Be A Good Investment – While investing in buying property might not be the wisest choice in case the housing market's future beyond 2021 crashes, there are still some housing-related stocks worth investing in. According to Forbes, KB Home (KBH), a homebuilding company, performed the strongest this year.
- Higher Demand For Larger Spaces Driven By Covid-19 – One of the most significant 2021 predictions and trends for the housing market is the demand for larger homes and homes in the suburbs instead of the city. This demand directly results from the Covid-19 pandemic, as many people found themselves with an inadequate work-from-home setup.
- Mortgage Rates At All Time Low, But It Won't Last Forever – One of the driving factors of the surge in housing prices and availability is the all-time low mortgage rates. However, whether you take advantage of these low prices by refinancing your existing home or buy a new home, it's important to note that these low rates won't last forever.
- First-Time Homebuyers Feeling The Squeeze – Although it is currently a purchasing market, things have been slightly tough for first-time homebuyers. As a result, many first-time homebuyers who usually receive smaller loans are struggling a bit more within the housing market, since there are not enough entry-level homes available.
These are the main 2021 predictions and trends for the housing market that suggest where the housing market is headed in 2021 and beyond. With these trends in mind, you can make wise investment and purchasing decisions in the housing market.
Tips And Suggestions For How To Navigate The Housing Market
One of the 2021 predictions and trends for the housing market that came about early this year was a considerable rise in sales in all regions. The Northeast had the most significant surge with a 15.5% uptick in housing sales, while the South had the slightest shift with a 4.9% rise in sales.
As housing sales continued to thrive, more and more homes were listed. This is great while it lasts, but many economists believe that it is not sustainable long-term. While some experts think we can maintain an uptick for a bit longer, others warn that the housing market's future beyond 2021 is headed for a decline, starting as soon as the second half of the year.
Currently, prospective homebuyers, property developers, and real estate investors should take advantage of the current peak we are in.
3 Tips For Navigating The Housing Market Successfully In 2021
The 2008 housing crash offers many tips and suggestions for successfully navigating the housing market in 2021. Learning from our past mistakes in a similar boom and bust cycle can help us go forward with minimal damage and hopefully avoid a crisis.
If you are concerned about where the housing market is headed in 2021 and beyond based on your specific real estate or potential investments, there are some tips you can keep in mind.
Listed below are 3 tips for how to navigate the housing market successfully in 2021:
- Seek Counsel & Expertise – The housing market is difficult to understand, especially for first-time buyers and investors. Therefore, it is crucial to seek guidance and counsel from housing market experts to ensure you are not making a huge mistake. Be sure to find impartial experts that do not have a financial stake in the matter.
- Conduct Research – One of the best tips for successfully navigating the housing market in 2021 is to do extensive research. Studying the 2008 housing market crash can help you avoid any pitfalls.
- Be Cautious – The housing market operates and changes at a rapid pace; however, don't let this pressure rush you into making a decision that could have catastrophic repercussions. One of the main tips for successfully navigating the housing market in 2021 is to be extra careful regarding investments to avoid loss.
About Us – Rely Services
Rely Services is a global business process outsourcing company specializing in mortgage BPO. We have served our clients in the mortgage and housing industries with comprehensive services and solutions specifically designed to help them achieve success.
If you want to learn more about the housing market's future beyond 2021, we would love to provide more information. Our team of experts is always happy to answer questions. Contact Us Here today!
