2020 was a difficult year for the country and it left a lot of Americans to feel like it’s going to last forever. It felt like everything you went into the store to buy was sold out due to panic buying. Prices skyrocketed on a lot of necessities and real estate was one of them – and continues to be a cause for concern.
The hope is that 2021 is going to be different and things will be on the mend. HomeLight’s 2021 Spring survey reveals that 84% of real estate agents are optimistic that the current housing inventory crisis can be alleviated. Let’s take a look at the factors that will (hopefully) turn the tides.
Vaccinations
145+ million Americans have received the vaccination as of June 13th. Real estate agents believe that as the vaccination rate continues to increase, real estate activity will pick up on both the buyer’s and seller’s sides. They predict that sellers will become more confident in the market (despite it being an already favorable market for them) and will list their homes in the near future.
Secondary or vacation homes will be for sale
Businesses all over the country have endured some kind of hardship as a result of the pandemic – thousands have suffered so much that they’ve closed for good. However, there have been many businesses that have begun implementing a remote work policy so they could continue to keep the business going. It is believed that this will become an ongoing policy for many companies and 49% of realtors believe that remote workers with multiple properties are likely to sell the ones that aren’t their primary residence. Plus, realtors believe that remote work will also lead people to migrate away from larger cities and opt for properties in the suburbs where things are cheaper and their money can buy a larger property.
Tax incentives
If there’s one thing that prevents first-time buyers from achieving that American Dream of homeownership, it’s the inability to save the recommended 20% for a down payment. Maxine Waters, the House Financial Services Chair, made a proposal where first-time homebuyers could receive a tax incentive worth up to $25,000 to be used toward a down payment on a home. President Biden also made a proposal where first-time homebuyers could use the $15,000 tax credit that normally comes when first-time buyers file their taxes the following year, to access the money at the time of purchase.
While this may be a great thing for buyers, it could mean that the housing shortage could get worse if inventory isn’t replenished fast enough.
The housing shortage will not last forever
Right now, it may feel like the housing shortage is going to last forever. It doesn’t seem like people are willing to take a chance on selling their homes because they’ll have to worry about finding a house too. That concern is very understandable since there are so many people trying to buy a house. However, you can’t get discouraged. The housing market isn’t going to be like this forever.
If you have no choice but to move right now, consider other types of housing. The condo market is gaining popularity and for those who have a limited budget, this could be a wise move. Of course, you can always consult a real estate agent and ask them their opinions about the state of the market and your options if you’re buying or selling property.