HomeLight, a real estate referral company, surveyed more than 1000 real estate professionals nationwide asking them what they saw as the biggest housing issues for 2021.
No surprise, the #1 issue...Inventory Shortages. We saw 2020 leave us with this same issue so this shouldn't come as a shock. The NAR (National Association of Realtors) reported that November 2020 had a 22% decrease in available homes compared to November 2019. The Midwestern region of the US was the least affected by a housing shortage; the South Atlantic was the most affected.
#2 Issue...Widely distributed vaccines to boost consumer confidence. Also not surprising is how Covid -19 has impacted the housing market. Of the 1000 agents surveyed, 50% felt that a vaccine could encourage more sellers to list their homes for sell and help offset the housing shorting. Keep in mind that because of the severity of the housing deficit, an increase in available homes will not greatly impact the market for a while. An additional benefit of the vaccine is that businesses can reopen and give Americans added job security and boost their confidence to enter the housing market.
#3...Foreclosure. 40% of those surveyed believe that the end of the forbearance and stimulus plans could result in an increase in foreclosures; the flip side is that those homeowners may have enough equity to sell strong if faced with a foreclosure.
#4...Low Mortgage rates continue to drive demand for housing. 68% of agents saw their renter clients purchase a home ahead of their initial timeline. 66% of current homeowners decided to "trade up" sooner than planned because of the low rates, and 46% saw their older clients downsize to their forever homes ahead of their original plan. 34% of the agents predict that once more people receive the Covid-19 vaccine and the economy improves, mortgage rates will rise.
#5...A permanent shift to work remotely and encourage more moves. Almost 15% of agents said the shift to WFH (working from home) could have the biggest impact on the real estate market in 2021. Relocations are becoming more popular with California topping the lists of states with the most remote jobs.
#6...Virus surges won't lead to further market panic. Unlike the beginning of Covid-19, real estate professionals now are more equipped to handle the anxiety and fears of their buyers and predict that if the virus surges, the market should not see a halt like previously. Virtual tours, digital closings, remote showings, and socially distancing have become part of real estate professionals standard business practices.
#7...Affordability challenges persist & tax credits help. 37% of non-homeowners state that coming up with the down payment is the biggest obstacle to homeownership. 11% of real estate agents believe that finding an affordable home will be a major challenge for their buyers in 2021. Tax credits from the new administration may help alleviate that issue for first time home buyers.
Utah Dave - Daybreak Neighboorhood Expert and Local Resident