As we round out Q1 of 2021, the housing market remains hot. H. O. T. But will it stay that way for the rest of the year? Can the real-estate industry sustain the unexpected momentum brought on by the COVID-19 pandemic? Is it a smart time to buy or sell?
Let’s have a look at what some of the experts are predicting and put it into easy-to-understand terms for you, whether you’re buying or selling in the near future.
Financial Post predicts a hangover
Predictions early in the year in this Financial Post article suggest that the year will look start out hot (they got that part right!) and then start to cool in the last half once vaccines, buyer psychology and interest rates settle. I tend to agree with this prediction, based on my almost 30 years of experience, this is typically how things start to shake up at the end of a seller’s boon.
Property prices remain at an all-time high right now due to the low number of homes available on the market. Why are there so few homes for sale? Why are previously eager-to-sell homeowners holding out longer than expected? Here are a few possible reasons:
People are waiting on the COVID-19 vaccines before listing: they don’t know if/where they will be working, or they’re nervous to interact with agents and buyers due to public health restrictions.
University and College closures have driven students back to their nests and their parents aren’t ready to downsize anymore. This is holding a large number of family homes hostage from the real estate market.
Folks are falling in love with their homes again after spending so much time in them during the lockdowns. Really! Home renovations and upgrades are booming as families find their new groove in old digs. (side note: we can’t WAIT to start listing these homes again in a few years; they’re going to look great!)
What does this mean for you?
Following this prediction, if you are selling your home, Q2 will continue in the same vein that Q1 did. That is to say, a shortage of properties on the market will drive competition and result in quicker sales and higher prices in most cases.
As more people put their homes in the 2nd half of the year and fewer people are looking for homes (now that they’ve all settled into the “new norm”), this frenzy will slow down in Q3 and Q4. Supply will start to increase, homes will take a little longer to sell and there won’t be as many of the fierce bidding wars and inflated prices that we saw throughout 2020 and the first part of 2021.
If you are buying a home, Q2 will keep you on your toes in search of an affordable option. Price point will continue to be the deciding factor for most home-buyers due to the limited number of options in any one area. There may be more options available in Q3 and Q4, however, and if you can wait, you might find some significant savings to be had.
Set yourself up for success by working with an agent who will alert you to possible properties to bid on quickly, before they’re scooped up. Well networked agents (like Bob!) will get the inside scoop on some properties before they’re even listed - giving you the edge that it takes to get into a new home during these competitive times.
Timing is everything
Real estate really is a circle of life. (cue the Lion King music). In most cases, home-sellers become home-buyers again, interacting with other home-sellers who become home-buyers. The tricky part of deciding if it’s time to put your home on the market during upswings like this, is finding another place to move to that isn’t overpriced and inflated by the seller’s market.
Folks are often delighted to learn what they’re home is valued at and begin to dream of what they can do with all of that money. But unless you are planning to downsize, it is not realistic to dream of moving into anything bigger or better than your current home because prices are high everywhere.
And this is where the insights of an experienced real estate agent is more valuable than gold. If you time it just right, you can sell high and buy low. The team here at Bob Blake have their finger on the pulse and are ready to help you time the sale and purchase of a new home perfectly. Reach out! Things are starting to rumble for Q2 already and we’d hate for you to miss out on the perfect time for you to make your move.