April 26, 2021
2 MINUTE READ
We’ve fully emerged from winter’s grip, and the heat is on — and not just in the air. The housing market is showing no signs of slowing in 2021. Not only is demand looking to stay high, but the pressure of low inventory may also be easing somewhat, giving millennials and Gen Z-ers more options as they enter the market.
Millenials — the biggest generation in history — are just now hitting prime home-buying age: the 30’s. Also, older millennials are knocking on 40 and similarly reaching their peak purchasing power, meaning the market will continue to be hot and skewed towards sellers in 2021.
Gen Z-ers are also dipping their toes into the real estate pool. Even though they have less buying power than their older peers, rock bottom interest rates may entice them to get in the game.
One of the reasons prices stayed so high in 2020 despite COVID-19 was low inventory. Sellers were hesitant to list. Whether they feared listing during a recession or simply didn’t have another place to move, the number of available homes was paltry.
However, as vaccines roll out and COVID eases, the economy—and with it, the appetite to sell—may roar back. This is good news for buyers because it may help coax prices a little lower.
Home prices proved immune to COVID in 2020, rising 5.7% higher than in 2019. While demand from younger buyers entering the market and a recovering economy will continue to push prices higher as 2021 progresses, greater inventory may pull the reins on the surge.
2021’s housing market will stay hot, but it may be slightly more buyer-friendly than last year. With COVID slipping into the background, more listings will come to the fore, easing the pressure on buyers. At the same time, sellers will still be in the driver’s seat due to the influx of Millenials and Gen Z-ers jumping into the fray.
So in 2021 finally gonna be your year? We’re always here to help you on your journey. To learn when and how to best enter the market, reach out to Reali to evaluate your options.