HOUSING MARKET EXPECTATIONS – 2021
The housing market in 2021 is expected to “settle somewhere in between where we were before COVID and where we were during COVID,” says Danielle Hale, Chief Economist for Realtor.com’s recent article entitled, “How the Rollout of COVID-19 Vaccines Could Help, and Hurt, the U.S. Housing Market.” More homes are expected to be on the market in the coming year, wrote Clare Trepasso for Realtor.com. “So desperate buyers won’t need to put in offers and waive contingencies before they’ve even finished touring the properties,” she said. But inventory can only increase gradually. Some people will feel comfortable listing their home during the first half of 2021, others will want to wait until the vaccines are widely distributed. This suggests more inventory will be for sale in late 2021 and into the spring selling season in 2022. Realtor.com also predicts prices will not dip, but neither will they continue escalating so rapidly. Increased new-construction starts may take some of the pressure off the housing market, resulting in fewer bidding wars as buyers have more homes to choose from.
As people spend more time at home, freed from long commutes, their priorities are shifting. Home buyers are placing more weight on the “neighborhood” and how “neighborly” it feels since the pandemic. Neighbors have emerged as a critical factor in their home search. Many Americans say they’ve gotten to know their neighbors better during the pandemic. Many say they’ve made an effort to be friendlier than usual, and report that their neighbors have helped to fill the void of visiting with friends and family during the pandemic. Many also say they’ve had at least one socially distanced gathering with neighbors. At-home workers are looking to replace water cooler mingling with co-workers from the office with strolls around the neighborhood. Driveway cocktail parties are filling the social gap that live events once did. Neighborhoods are emerging as just so much more important now. Buyers are showing more interest in belonging to a neighborhood, whether for socializing or organizing children’s learning pods for remote learning.
An experienced attorney can insure you’re buying what you think you’re buying and protect you against unexpected and unwelcome costs, expenses and casualties at closing and afterward. My expertise can help protect your transaction and achieve the best results for you and your family. For more information please contact me at: 203-544-9945 or Beth@eedwardslaw.com.
