Because of the impacts of COVID-19, the real estate market dipped in the middle of 2020, and had a slight bounce before the year ended. Unemployment rate has increased, commodities have gone higher, and investment rates have deteriorated due to uncertainties associated with the spread of the virus. All of these factors have affected the real estate market in one way or another.
While the previous year was a difficult one for almost everyone, most especially to investors, the real estate market is changing for 2021. Know what to expect in the real estate market in the new year by reading below.
Selling Properties Fast
Due to the impacts of the new normal, selling properties must be made faster and easier. Prolonging waiting time may just result in lower prices, frustration, and regret. If you’re in a hurry to close a deal, you can negotiate with we buy houses companies. No need to deal with agents or entertain too may house visitors to view your property, who could be potential carriers of the deadly COVID-19 virus
Full Force Utilization Of Digital Technology
Realtors and real estate investors have learned many things in 2020, and one of which is the importance of using digital technology.
Check the following results of utilizing technology in the real estate market:
• Communication: Instead of physically assisting investors, realtors have learned how to use online tools to help buyers and sellers through virtual meetings.
• Flexible Working Hours: Real estate sales and marketing drastically shifted from fieldwork to work-at-home setting, which enables flexible working hours.
• Sales And Marketing: Email marketing and social media marketing are just some of the most sought strategies used in real estate.
Expert Predictions
Herre are some expert predictions on the ups and downs of the real estate market this 2021:
• New Construction: Because of the increasing prices of existing homes, more buyers will consider building a new one. It’s especially true in rural and suburban areas where land is relatively cheaper.
• New Homes For The New Normal: More home sales are expected this year, from 5% last year to more than 10% in 2021. It’s because Americans want to buy homes that fit their new lifestyle.
• Price Increases: Price will increase in metropolitan areas and mid-sized cities, such as New York, San Francisco, Salt Lake City, and Austin, Texas.
• Legislation: Congress is foreseen to approve legislation for creating a new home ownership assistance program during the administration of the new US president, which will help increase the rate of homeownership among the minority groups. Alternative financing options will increase in 2021. The federal government is expected to create an incentive stimulus program. It will help homeowners and landlords, such as extended eviction moratorium.
COVID Vaccination Brings Hope
The discovery and use of COVID-19 vaccines bring hope to everyone. While it’s seemingly impossible to go back to the pre-COVID state, the new normal, after everyone has been vaccinated, will bring new beginnings. It would mean higher employment rate and increased capability of people to afford buying new properties.
Possibly, new real estate investment schemes will be created using state-of-the-art technology. The introduction of artificial intelligence utilizes chatbots, which allow real estate professionals to market, monitor, and test various techniques and services through the virtual or online world.
COVID-19 vaccination will provide the following benefits to the real estate market:
• People’s confidence in completely vaccinated areas will increase when it comes to buying and selling properties
• The value of properties will gradually increase, which will benefit property sellers.
• Home buyers will be helped by the government and the sellers by providing longer and lower down payment schemes.
The Big Change
If there’s one major change in the real estate market, it’s less face-to-face interactions, along with the increased use of the Internet of things (IoT). It involves the use of physical objects equipped with sensors, software, or apps, which will help real estate professionals and investors monitor their performance and investments.
Because of safety protocols set in place, more people are willing to consider undergoing virtual meetings. Discussing real estate matters over the phone or the Internet will be the more preferred method over face-to-face interactions until everyone has been vaccinated and the number of COVID-19 cases starts to drastically drop.
Conclusion
The real estate market this 2021 promises more benefits than drawbacks. While more people prefer to build new homes in rural and suburban areas because of cheaper lands, houses in mid-sized cities and metropolitan areas are expected to increase. More legislations will be passed to help more people afford to buy homes during the pandemic. As for home sellers, working with direct property buying companies can help reduce the hassle of listing and entertaining buyers visiting their properties, which helps in curbing the spread of the virus.
