There’s no denying the negative impacts of the ongoing COVID-19 pandemic on numerous businesses and industries, as well as entire countries and continents. Among the negatively-hit industries is the real estate or housing market, which experienced a sharp drop in total sales particularly at the height of the pandemic.
Expert predictions, meanwhile, paint various scenarios concerning the real estate market’s behavior for the coming year. Accordingly, potential buyers and sellers of properties should seriously look at these scenarios, so they’ll make the right decisions based on such predictions and other determining factors.
To help you out, here are some of the real estate market developments that are projected to happen in 2021:
Rental prices will stay flat during the first quarter.
Consumers who were laid off or have their hours significantly reduced due to COVID-19 have a silver lining to look forward to in the year to come. This is due to the expected stalemate in terms of rental prices during the first quarter of 2021. Renters in suburban areas and even those in big cities can expect to enjoy such a perk if predictions are to come true. They should, however, brace for potential spikes in rental prices as the industry begins to recover.
Interest rates for mortgages remain on the low side.
It’s exciting to think that the low-interest rates in mortgages being enjoyed by thousands of property owners are predicted to continue well into 2021. If you have a mortgage agent or broker, now is the best time to ask your agent to help you in refinancing your loan, so you’ll pay a lower amount monthly just enough to survive the ongoing pandemic. The trend of low-interest rates on mortgages is most likely due to the attitude of homeowners to simply refinance instead of selling their homes to buy a new one.
Social media will be vital in marketing real estate listings.
For many years now, social media sites such as Facebook, Instagram, and Twitter have helped businesses promote their products and services to a wide audience. In 2021, the real estate market can capitalize on the immense reach of social media to generate leads when buying or selling properties. If you’re keen about getting a property or selling one in the coming year, then be sure to consider harnessing the power of social media for your gain.
There will be a steady rise in demands for inexpensive housing.
Right now, there is already a high demand for affordable housing as many people have lost their jobs, and as mortgage interest rates continue to be on the low side. These things make for an interesting combination that gives more weight to the call for affordable housing considering the current situation of the country in relation to the pandemic.
Virtual tours will be commonplace.
Just like the shift to digital forms of marketing via social media, you should also expect to see more and more virtual real estate tours in the year to come. There are actually numerous virtual house tours right now as a direct result of COVID-19 restrictions. Come 2021, this trend will more likely be present as people still choose to buy or sell properties at the comfort and safety of their homes.
There will be lots of new constructions everywhere.
Data from the US Census Bureau revealed that there were close to 1.64 million building permits issued in November alone. The number of building permits indicates that by next year, the home building industry and, by extension, the real estate industry, will both have a field day that would allow them to bounce back from their losses.
With these positive predictions, there are truly great reasons to be optimistic about the coming year, especially for real estate buyers and sellers.