From the moment the COVID vaccine was announced, people started to feel like things were finally on the mend. We’d be able to go out and do things that we couldn’t do in the past year. We’d be able to spend time with friends, travel, and just enjoy life again.
The effect the vaccine rollout will have on the country isn’t just in regard to everyday people – businesses and the real estate market are going to be impacted, too. According to top agent insights, these are the effects that we can expect to see in the market over the next year.
The seller’s market will continue to grow
When you compare the real estate market at the beginning of the pandemic in February 2020 to what it is now, it’s a great time to be a seller. 97% of real estate agents are seeing an uptick in activity and they don’t see it slowing down any time soon.
Home prices will increase as inventory decreases
One of the reasons it’s such a strong seller’s market is because there simply aren’t enough houses to meet demand. The lack of inventory means that buyers are jumping on houses as soon as they come on the market and many are making offers at or above asking price. But despite the higher offers, home prices are on the rise and a whopping 93% of agents say prices will continue to rise over the next six months, if not longer. If you’re thinking about selling, now’s a great time to do so.
Low mortgage rates brings out more buyers
It’s not unusual for buyers to use a home affordability calculator to get an idea of how much house they can afford before they even start looking. However, with mortgage rates being so low, markets are being overwhelmed by an influx of buyers who are looking to take advantage of these low rates. Unfortunately, this means that the increase in demand will continue to deplete inventory (even with a growing interest in new construction) if buyer demand continues at this rate.
Uneven vaccine roll outs will affect markets differently
Although vaccines are being distributed all throughout the country, some areas aren’t getting as many doses as others, therefore affecting that area’s housing market. Not only are some areas not receiving the promised doses, but residents of densely populated areas are having a difficult time getting appointments to be vaccinated. Because of this, those people are going to smaller towns, therefore taking vaccines that were meant for that area. It’s a lose-lose situation all around unfortunately.
More people will enter the market at the end of the school year
It’s still uncertain if remote work will be a permanent fixture for many businesses, but if it does, parents of school-aged children are more likely to relocate once the school year is over because it’ll be easier to transfer their children to a new district then rather than during the school year. Even families who have second or vacation homes in less dense areas are likely to sell their current home and use the second home as their new permanent home so the kids can enjoy more space and access to the outdoors.
There’s no doubt that as more people get vaccinated, we’ll get some sense of normalcy. Life won’t be 100% the same, but we won’t feel like we have to don hazmat suits just to go to the grocery store or we have to stay in our homes despite wanting (or needing) to move.
The real estate market is ever changing, but when we pay attention to what the top real estate agents predict what it’ll be like in the upcoming months, chances are they’re right. Or, at the very least you can decide to talk to an agent to see what the market is like in your area and you can go from there. Either way… Let the vaccines roll!