As 2020 comes to a close, there is so much to reflect on. Almost every industry was impacted by the COVID-19 pandemic and real estate was not an exception. There were record lows and record highs, and through it all we adapted to ensure that clients would still be guaranteed 100% satisfaction. Agents held virtual tours, we kept our distance while viewing properties and e-signing contracts, we even did complete transactions without ever meeting in person! The past year’s trends can give us good insight into what will likely happen in the following months.
Here are a few things the real estate industry can expect to see in 2021:
Remote work causing families and individuals to move out of cities.
The ability to work from home expands your horizons when it comes to choosing a place to live. Many have taken advantage of this by moving to the Jersey Shore as year-round residents rather than just summer beachgoers. This has created a huge void in listing volume and a significant increase in home values.
If you have a property you’re thinking of selling, now is the time to do so.
The pandemic favored sellers as inventory continued to drop throughout the year, so price points have reached historical heights. Buyers are practically lining up outside our doors, so if you have a rental home you’re looking to unload, are looking to make a move, or want to downsize, doing so now can get you an amazing ROI.
VA loans are on the rise.
The number of mortgages backed by the U.S. Department of Veterans Affairs has nearly doubled since 2019, with more than 1 million VA loans issued in 2020. Younger veterans are purchasing homes and driving demand, causing VA loans to make up about 10% of the mortgage market.
Mortgage rates will remain low.
The Federal Reserve is expected to accommodate monetary police and aim to keep the federal funds target below 0.25% through the end of 2021 at least.
An increase in first-time home buyers.
Millennials make up the largest generation and now that many of them are approaching their late 30s and starting their own families, they’re going to be purchasing homes where they will have the space to do so.
All trends aside, the real estate market proves time and time again that it is resilient. Agents will continue to adjust, investors will pivot, and we will come out the other end of a new year better and stronger than before! The ever-changing market also reinforces the need and value in working with an experienced realtor. Professional guidance goes a LONG way and helps buyers and sellers get the best deal with best possible terms. Peace of mind is incredibly valuable.
As always, if you have any questions about the current market, we are just a phone call away. Contact us at (609) 884-4242 and chat with an experienced agent directly!
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