What are the emerging real estate trends 2021?
In the latest PwC Emerging Trends in Real Estate®: US and Canada report, leading real estate experts discuss in-depth the numerous real estate trends that have been both accelerated and slowed down by the COVID-19 pandemic.
In this blog, we take a closer look at the top three trends that are set to shape the property market as we know it this year.
- The housing market at low risk of downturn in 2021
- Property prices anticipated to continue rising at a steady 3 percent pace
- Economists say there is no imminent property market crash projected for 2021
- Low supply of property listings is driving high real estate demand
- Extremely low and stable mortgage rates are encouraging investors to buy properties
Real estate trend #1 Single-family home and industrial property prices on the rise
The following types of properties are expected to rise in value in 2021:
- Single family homes
- Data centers
- Industrial properties
November 2020 saw a 22% decrease in home listings compared to November 2019. This scarcity of home listings is driving demand up and subsequently the price of single family homes.
This is good news for sellers as homes don’t remain on the market long. In fact, 70% of homes were sold within 3 weeks of listing in November 2020.
While sellers are enjoying the current climate, there is worry as we are already beginning to see the early stages of an affordable housing crisis looming ahead.
Real estate trend #2 The rise of virtual closings and home-buying-as-a-service
While some may be convinced that the latest fad – buying property and closing online is merely a trend that will pass, it appears the digital realtor experience is here to stay.
Established property-centric companies like Opendoor and Zillow have stepped in to offer home-buying-as-a-service. Yes, these enterprises have seen an opening in the market to act like mega-agents because of their reach.
All sellers have to do is give them details about the property they wish to sell and these companies will take care of all the aspects related to the sale of the property. They’ll handle home staging, showing, repairs, and inspections.
Signing of contracts can be done remotely without you ever having to leave your home.
Real estate trend #3 Mortgage rates are steady and remain generally low
One of the most favorable real estate trends 2021 concerns the financial aspect of real estate investing.
One would expect mortgage rates to fluctuate given the uncertain economic climate. Thankfully however, the mortgage interest rate has remained stable and on the low side of things.
In fact, there has even been some good news: the average 15-year fixed-rate mortgage reached an all-time 30-year low of 2.31 percent in November 2020. Economists are convinced that the interest rates won’t move beyond 3 percent this year.
What does this mean for buyers and sellers?
Investors are more willing to buy when interest rates are low and stable. The result is offers are made quickly and properties close faster.
As long as this remains the case, sellers can position themselves strategically to accept high-quality offers knowing there is a willing buyer market.
Do you need the services of a qualified property manager?
Are you interested in learning more about the real estate trends for 2021? Would you like to discuss buying, leasing, and selling property with a trusted property manager?
Get in touch with our PMI Front Range Colorado agents. Contact us for more information.