The COVID-19 pandemic continues to impact the lives of millions of people across the globe. While the battle continues, the world is now starting to pick up the pace and recover.
Despite this, though, the challenges are still present, as the current events persist to be unprecedented. This is why many trends today in various industries seemingly continue to shock the public. One great example of this lies in the world of real estate.
Here are some of the top marketing predictions in the real estate industry for 2021 that many people did not see coming:
The Housing Boom: To Last or Crash?
Surprisingly, there has been a housing boom in the last few years. This is despite the pandemic crisis, which has forced many individuals, families, and businessmen to be keener and more watchful of their overall expenses.
Nevertheless, many are still wondering whether the apparent boom will last or crash in the remaining months of 2021.
Experts have claimed that housing sales will likely decrease this year. However, this does not mean that the market will crash. This will only slow down the pace later in the year, as per predictions.
As a matter of fact, on an annual note, the home sales figure for the year will likely be 6.2 percent higher than last year. So, it is expected that the boom will last in months to come.
Slight Uptick in Mortgage Defaults
Recent data from S&P Dow Jones Indices and Experian shows that the mortgage defaults edged up in December of 2020. The rate was up from 0.28 percent to 0.29 percent during the said month. Likewise, the bank card default rate also saw a similar trend, with an increase of seven basis points.
Although mortgage rates will remain low throughout the year, as predicted by experts and analysts, there will be slight upticks from time to time. The average will likely reportedly be 3.2 percent, adding that mortgage costs will rise steadily.
Buying, Selling Homes Will Be Offered At One-Stop Shops
Competition in the market will step up in the next few months. This leads to several real estate companies becoming a one-stop-shop for clients.
Apart from the usual one or two services, packages and deals will be available for overall convenience and efficiency. Analysts are seeing an integration of various offers like cash for homes, home trade-ins, moving services, insurance policies, and listing preps.
Accordingly, these ventures and companies will see more investments in talent, acquisitions, and technology this year.
Expensive Cities To Invest In Culture, Lifestyle
In 2021, experts believe that expensive cities will lose residents. This is because many employees will continue to work remotely, causing them to leave their temporary houses and apartments in the big cities back to their hometowns, or for much cheaper options.
To answer to these losses, big and expensive cities will adapt and reimagine their respective economies. Accordingly, their housing market will likely invest more in culture and lifestyle to attract people who are into these kinds of interests. These also include tourists and travelers.
Plenty of New Home Buyers Will Appear
As the unprecedented times remain apparent, more people are looking for stability. This is why many individuals will look primarily into their home and housing situations, leading to the increase of new homebuyers.
Reports said that earlier this year, several real estate agents and realtors became more encouraged by the number of new buyers. Data also shows that the buying potential in recent months has been “super high” across cities and regions. This trend has since continued, and will likely reportedly persist in the foreseeable future.
Rental Prices Are Down and Housing Prices Are Up
Another surprising trend and prediction in the housing market in the last few months have relations to the dynamic between renting and buying homes. As noted, the rental markets continue to decrease, while the latter sees an increasing trend due to the growing and expanding demand.
This is despite the increasing cost of homes and properties in today’s market. In metro areas and expensive cities, however, there has been reportedly a decline in the last few months.
Homebuyers Making Offers On Home Sight Unseen
Many homebuyers today have now become more comfortable in making offers despite not seeing the properties in person. Apparently, virtual walkthroughs and home viewing have become a norm among clients in the last few months.
This likely comes after restrictions and precautionary measures due to the pandemic. Even so, this dynamic has seemingly led the virtual home viewing to increase by 560 percent since earlier in February.
With the safety and security that this entails, as well as convenience and reliability, it is not surprising that this trend has bloomed these days. Also, it will not reportedly come as a shock when this continues even after the pandemic.
Homeownership Rates Will Increase Further
As noted, the demand for homes will continue to increase in the next few months, and even years. It is likely that this will skyrocket further once the pandemic crisis concludes.
Analysts are predicting a rise above 69 percent in the homeownership rate starting this year. This is monumental because it would be the first time since 2005.
If you and your business are still in the process of recovery following the pandemic crisis, these pointers may help you out this year. You may utilize this as a guide for your venture in the world of real estate in the next few months and even years.