What's to Come in 2021
The main question that tends to haunt people's minds right now is, What will happen in 2021? Well, that is the same case in real estate. People are continuously wondering if they should buy now or wait. If they should put their house up for sale while the market for sellers is hot or if they will have the same seller advantages later in the year. The unpredictability of the market will cause a lot of inaction. So hopefully this short thought on our future can help some of those troubling thoughts buyers and sellers may have.
2020 ended with a bang, sending the Houston real estate market further into the Seller’s Market side of real estate. Months of Inventory (MOI) decreased to almost 1 MOI. This showed how aggressive buyers were continuing to be due to the drastically low-interest rates. Furthermore, sellers seemed to take a step back from selling their homes. This caused a drop in inventory significantly dropped the supply of homes with respect to the demand for homes.
I believe that as the year goes on more and more sellers will take action. This will create stability in the real estate market and even out the playing field for both buyers and sellers. According to REALTOR.com 2021 Housing Forecast, 2021 is expected to have a continuous increase in home prices. However, at a lesser rate than in 2020; Meaning that prices could stay high until 2022. As long as the interest rates keep going down, demand for homes will continue to trump its supply. It is expected that if interest rates start increasing, the market will balance out as the number of buyers decreases.
Overall, buyers expecting super deals on homes this year may be out of luck and could miss out on the historically low-interest rates. On the other hand, Sellers who are hesitant to sell may be missing out on the best opportunity to get the most for their home.