HomeLight released their Top Agent Insights Spring 2021 Report! Homelight polled almost 1,400 from February to March to hear their thoughts about the real estate market. Here are some key trends that are or can influence the summer 2021 housing market.
- Seller’s market continues to intensify and spread.
The market is still hot everywhere, giving sellers the upper hand. In Q1 2021, 97% of agents said it was a seller’s market. And the market has only built momentum thanks to the pandemic forcing people to work from home or acquire new jobs, which is what’s leading people to move or buy homes. 91% of agents reported feeling surprised at how low inventory is compared to what they expected.
- Home prices are increasing as inventory decreases.
According to the National Association of REALTORS®, the housing supply has dropped 29.5% year over year in February to a record low of 1.03 million units. Low inventory has created a significant increase in home values. 93% of agents say home prices are on the rise in their market, and I agree! NAR data confirms this as well. A house worth $266,300 at the start of 2020 is now worth $303,900.
- Low mortgage rates are contributing to bidding wars.
These historically low mortgage rates are making homeownership a reality for some and influencing people to buy homes. 97% of agents say low mortgage rates increase buyer demand, and 52% reported that bidding wars are on the rise. Mortgage rates are increasing, but it still has a long way to go until they’re considered “high” or “moderate” again.
- Vaccinations will cause more people to sell their homes.
At the beginning of 2021, 50% of agents said that a widely distributed vaccine would encourage more sellers to sell their homes. This prediction is partially accurate. It depends on the region and market types and how available vaccines are. For example, almost 32% of agents in the Northeast region say vaccines impact their market. This is most likely due to the Northeast region having a share of the total population given at least one shot exceeding 25% in mid-March.
- The end of the school year could bring another homebuying rush.
About 54% of agents said parents would take the summer off from school to relocate. This is because it’s a lot easier for a child to transfer schools during summer than in the middle of the year. More families might be looking to buy homes during summer 2021 because of the long stay-at-home mandates and the low mortgage rates influencing families to have more square footage.
- When full-time, in-person school resumes, it will have a ripple effect on housing.
Almost 50% of agents said parents who bought homes in vacation or second markets would return to their main home for the school year and rent out the secondary residence. Over a third of agents say parents will stay in their vacation or second home market and use summer to transfer their kids nearby so they can enjoy the abundance of space and outdoor access. This most likely means they’ll sell their other residence.