What is the housing market going to do in 2021 & 2022? That's the question on every agent's mind, as well as, all potential home buyers & sellers. Experts predicted that COVID would cause a sharp downturn in the market last year, possibly even a collapse. However, the market only slowed slightly, then picked back up stronger than anyone could have foreseen. So that leaves a lot of question marks over this year and the next. Looking at the last several months compared to the previous year can show us a great deal though. Here are some quick stats* about the trends we're seeing right now:
- In January 2021, the median national home listing price grew by 15.4% year-over-year, to $346,000.
- The nation’s median listing price per square foot also grew by 17.5% compared to last year.
- In February 2021, the median national home listing price grew by 13.7% year-over-year, to $353,000.
- In March 2021, the median national home listing price grew by 15.6% year-over-year, to $370,000.
So you can see a steady increase in listing prices for this year. What we're not seeing however, is an increase in inventory. This year is expected to remain a tight market and that could carry over into 2022. One of the main reasons for this is millennials. Currently millennials make up the largest share of homebuyers in the US, according to a 2020 survey from the NAR. According to a new study by Realtor.com, buying is more cost-efficient than renting in a growing number of large cities. About 4.8 million millennials are turning 30 this year, & will continue to do so for the next several years. As they enter their 30s, many millennials are looking to stop renting and finally invest in their dream home. The challenge for the housing market will be meeting this high demand with very limited inventory.
So what does this mean for real estate agents? First, you have to be able to work fast. Average days on market are trending down as much as listing prices are trending up. You have to be upfront with your clients about how quickly they need to make decisions and get offers in. Second, you also need to know how to make your offer the most appealing to the sellers. Lastly, since millennials are the majority of homebuyers right now you need to know what they're looking for. What features attract them the most? Open floor plans, smart home technology, hardwood floors, storage space, etc. Knowing these things will help you guide your sellers to making their home more attractive for this generation, therefore bringing in more competitive offers.
This market is without a doubt going to be stressful for agents, but also has the potential of being very profitable. Make sure you're working with a reliable team and have mentors you can depend on. Village Premier Collection can offer you both! Contact us today with any questions.