The pandemic has presented a bunch of challenges that have made the nation and its people alter their lives in order to stay safe and prevent the spread of the pathogen. Many people are still in turmoil because they’ve lost their jobs and they don’t know when they’ll get back to work. Millions of people face eviction or foreclosure, so it’s understandable that people are worried.
One way that people are mitigating their struggles is by moving away from crowded and expensive supercities in favor of smaller cities and towns that show promise of growth. Let’s take a look at some predictions about the 2021 housing market using top agent insights.
People no longer favor superstar cities
Part of the appeal of large supercities is that there are so many things to do, places to see, and a thriving job market. People who migrate to the big city do so because they want to be in the thick of it and soak up all of the culture that comes with a diverse population. However, since the pandemic struck and businesses have closed (some for good), the things that drew people to the city are no longer there in such abundance. There aren’t as many people flocking to huge cities like Chicago or New York City like they used to.
Migration may increase if remote work becomes permanent
Although there have been mass business closures across the nation, many businesses have shifted their workforce from in office to working from home – if their work could be done remotely. We don’t know whether remote work will be a permanent company policy, but 96% of real estate agents in cities with less than one million residents are seeing a huge uptick in buyer demand.
The downside to this is that there’s an inventory shortage in many markets because people aren’t putting their houses on the market. There simply aren’t enough houses (even new construction homes) to go around.
Interest in condo life is gaining traction
It’s not uncommon for people who have lived in an apartment to want to own a home with lots of space and not share a wall with their neighbor. However, 55.5% of agents are saying buyers are hopping on the condo train and are snatching up condos left and right.
Folks prefer to live in a warmer climate
Okay, we have a question for you… Who really likes living in a cold climate? Sure, you’ll have some snowbirds who feel best when there’s snow on the ground, but more often than not, people want to live in an area where the sun is shining and the air is warm the majority of the time. Warm weather is exactly what the southern states offer and people are flocking to the smaller cities in the south. Not only is the weather warmer in the south, cities like Austin are becoming popular among young professionals.
Predictions of 2021’s housing market is ever evolving
COVID-19 has shaken up industries around the nation and people are trying to adapt as best as they can. As more people get vaccinated, agents believe the housing market is going to explode with activity. But with that said, we can’t know for certain what the future holds and sometimes we need to pack up and move, regardless of what the market is like. That’s why it’s important to find a trusted real estate agent who can help you navigate the ever evolving market.
If you’re uncertain about how you can find an agent, check out these tips for finding a realtor!