We would all like to forget about 2020 and the effects that COVID-19 had throughout the United States. Between the financial insecurities and quarantine restrictions, it’s been a difficult year. But the real estate market showed some interesting trends across the country and in North Carolina. The demand for houses was there, while the inventory struggled to keep up in many areas as people were hesitant to sell. This raised prices and made for a seller’s market with many homes selling quickly and the homebuying season extending much further into the fall than it normally does.
In 2021, we can expect the market to continue to be a seller’s market, with housing prices rising even more. According to Realtor.com’s 2021 Housing Market Forecast and Prediction, it looks like 2021 will end with housing prices 7.6% above 2019 numbers and it’s predicted 2021 will end with prices about 5.7% above 2020 prices. Many scientists and health experts believe the pandemic will be under control by the end of 2021. Within that time, the current housing shortage is expected to get resolved along the way. More people will want to relocate for better job opportunities, which may mean an increased demand for houses.
Let’s take a look at the real estate outlook for 2021.
Buyer’s Market or Seller’s Market?
Here is the big question that every real estate agent wants to know about 2021: will it be a buyer’s market or a seller’s market? Despite how it feels, we are not in an official economic recession.
If you look at the stock market prices, for example, they’re still at all-time highs. It is not like the 2008 recession, where the economy crashed, and the housing prices tanked. We still have a strong economy with gradually increasing house prices across the country. It’s likely that in 2021 you will see more buyer confidence in the housing market.
Therefore, you can expect to see a continuation of a strong seller’s market in 2021. Residential houses in the suburbs will be in more demand than apartments in the city. Since many professional people will continue to work remotely throughout 2021, they won’t need to live near their jobs in larger cities. Instead, they’ll have the luxury to work from home situations in a peaceful suburban neighborhood.
It is only a buyer’s market when homeowners are desperate to sell. That is when you would see an abundance of home listings at lower than market value prices. But if you study what happened in the market during 2020, there were fewer home listings on the market increasing their demand.
Realtor.com’s 2021 Housing Market Forecast and Prediction reports that many areas in North Carolina will see significant growth. The Charlotte area is predicted to see a 13.8% growth in sales with a 5.2% increase in home prices. The Greensboro area should see a 6% increase in sales with a 3.9% increase in housing prices. While these are just a few of the metro areas reported on, you can see the full list and that overall that the real estate outlook for residential homes in North Carolina looks promising.
It’s the Best Time to Get a Real Estate Education
There is no better time to receive a real estate education and become an agent than right now. The real estate market is only going to get stronger from this point forward. If you can receive your real estate license within the next few months, you can start establishing your reputation and obtain clients as both a seller’s agent and buyer’s agent.
By this time next year, you’ll be positioned perfectly to take advantage of the thriving seller’s market. More homeowners will sell their homes for market to above-market prices, which means higher commissions for you and your real estate office. Buyers will be just as eager to buy new homes as they get hired for new jobs and reestablish themselves again post-COVID.