The year 2020 was highly unusual, especially for the real estate industry. Here at Century 21 Americana, we had a series of predictions for how the year would turn out. The market in 2020 exceeded even our wildest predictions
In 2021, we expect even more changes and developments in the industry. Due to the pandemic, a lot of fundamental shifts have taken place across the real estate industry that we are yet to fully understand.
Despite the somewhat more unpredictable outlook, we remain confident that a series of trends observed from 2020 will help us make conservative predictions about what to expect in real estate in the year 2021.
Will the Real Estate Industry Boom in 2021?
Many people expected the real estate market to fall in 2020 because of the economic crunch caused by the pandemic. Surprisingly, the market boomed towards the third and fourth quarters of the year after an initial fall. By August, home sales had jumped 43% compared to 2019.
The growth in real estate was partly due to suburban purchases as people sought to escape the congested, expensive cities. Now, with the additional low-mortgage rates that have become available during the pandemic, the market will likely grow even more in 2021.
More importantly, demand is rising while the supply has been falling for some time. Currently, leading real estate agencies predict that demand is twice what it was in 2019, while the supply is two-thirds of previous levels.
The combination of these factors has already caused home prices to rise 15%, and this trend will likely continue into 2021. Even with an expected increase in mortgage rates, the industry will likely boom through 2021.
Will the Real Industry Return to Normal in 2021?
COVID-19 vaccines have already been announced and are currently under distribution across the world. This means that a sense of normalcy is likely to resume in the second half of 2021. This is good news for everybody, but just how “normal” the industry will become is anybody’s guess.
We have seen changes in consumer behavior unlike any experienced before. While factors like location still matter, buyers are looking for a safer, more comfortable home experience. They want home offices, larger gardens, and more suburban homes.
When the pandemic passes, the real estate industry will be transformed to be more dynamic and customer-focused. Agents will need to be ready to walk the extra mile to make a sale by selling value instead of utility.
How Has the Real Estate Market Changed So Far in 2021?
There’s no denying that the real estate industry has been transformed and that 2020 forced people to face fundamental questions about safety, community, and financial sustenance.
One of the most visible changes has been the migration from 24-hour megacities to small towns and far away states. Now with the ability to work from home, people are loving the freedom to explore new locations. What matters to them right now is comfort and safety.
This change can be easily described this way: people are more willing to live where they want as opposed to where they have to stay. As a result, neighborhoods are changing and suburbs are expanding. Even the rental housing market has transformed as tenants seek more wholesome housing.
Will the Real Estate Industry Be Easy in 2021?
You may be concerned about whether 2021 is the year to get into real estate. The truth is, the chaos and unpredictability of 2020 will make it an interesting year in real estate as people adapt
However, that means that there are more opportunities than for those who are ready to embrace the change and work harder. Increased housing prices and faster turnover means more opportunities for everyone, even those who are just getting into the market.
How Should Real Estate Agents Prepare for 2021?
The market will need to prepare for the ups and downs the new year may bring. Even with the vaccines being administered, it might still be a long time before people feel safe enough to return to a state of normalcy.
More importantly, the high-demand trend will likely not last through the year. Past April, some experts are predicting a slump in sales. The way to deal with this is to set up strategies to attract buyers and sellers.
As a real estate agent, you will also need to be ready to adopt technology to make your work easier. The use of social media and online platforms has already helped house sales to continue despite isolation guidelines, with agents using 3D technology to conduct open house visits.
What Real Estate Trends Are Likely to Continue into 2021?
There are a few solid trends that you can expect for the new year.
- The government is likely to institute measures to make housing more affordable, especially with the new presidential administration.
- Interest rates will likely remain low and favorable.
- Even when work resumes, people will want to retain single-housing living conditions.
- The building and construction market will step up to try and meet rising demand, while rental space will become harder to get.
- People are also realizing that they don’t even have to view the home in person to purchase real estate, so a move to digital channels will become more likely.
So What Should We Expect As a Real Estate Agent in 2021?
Being a real estate agent in 2021 will open up a lot of opportunities. Despite the deep changes that have taken place, the market will continue to grow. Agents will be able to cope with the new landscape and thrive with the right training and exposure.
If you want to become a real estate agent in Nevada, you will need to prepare and train formally for the role. Century 21 Americana Real Estate School is is the premier school to prepare real estate agents to enter into this exciting industry. Check out our 90-hour pre-licensing course for more information about how you can become a professional real estate agent in 2021.