Are you looking for a home to purchase right now and having trouble finding one? Don’t worry, you are not alone. At a time like this when there are so few houses for sale, it’s normal to wonder if you’ll actually find one to buy.
According to the National Association of Realtors (NAR), across the country, inventory of available homes for sale is at an all-time low – the lowest point recorded since NAR began tracking this metric in 1982. There are, however, more homes expected to hit the market.
The Three Key Places Homes Will Most Likely Come From As 2021 Continues On
1. Homeowners Who Didn’t Sell Last Year
In 2020, many sellers decided to pause their moving plans for a number of different reasons. From health concerns about the pandemic to financial uncertainty.
Now that vaccines are being distributed and there’s a light at the end of the COVID-19 tunnel, it should bring some peace of mind to many potential sellers.
As Danielle Hale, Chief Economist at realtor.com, notes:
“Fortunately for would-be homebuyers, we expect sellers to return to the market as we see improvement in the economy and progress against the coronavirus.”
2. More New Homes Will Be Built
Last year was a strong year for home builders, and according to the National Association of Home Builders (NAHB), 2021 is expected to be even better:
“For 2021, NAHB expects ongoing growth for single-family construction. It will be the first year for which total single-family construction will exceed 1 million starts since the Great Recession.”
In today’s housing market there’s plenty of homeowners looking for their dream home to meet their changing needs. They will sell their current houses, and create opportunities for those looking to find a home that’s already built.
3. Those Impacted Financially by the Economic Crisis
Are you aware that many experts don’t anticipate a large wave of foreclosures coming to the market? Given the forbearance options afforded to current homeowners throughout the pandemic, some homeowners may decide to sell their houses instead of going into the foreclosure process, especially given the equity in homes today.
Lawrence Yun, Chief Economist at NAR, explains:
“Given the huge price gains recently, I don’t think many homes will have to go to foreclosure…I think homes will just be sold, and there will be cash left over for the seller, even in a distressed situation. So that’s a bit of a silver lining in that we don’t expect a massive sale of distressed properties.”
Housing Demand
Did you know that housing demand is high and supply is low? Are you thinking of selling and making a move? Doing so while demand for your house is high might create an outstanding move-up option for you.
As we can see, we’re going to have an increase in the number of homes for sale in 2021. The fears of the pandemic starting to ease, new homes being built, and more listings coming to the market prior to foreclosure, there’s hope if you’re planning to buy this year. Connect with us today to see how you can benefit from the opportunities available in our local market.