If you work in the industry or plan to buy or sell New Jersey real estate
this year, you need to know the real estate market outlook for 2021. Achieving your real estate goal is possible this year with enough planning and research about current trends. Pay attention to the following to stay in the know.
1. Prices Are Still Rising
2020 saw a gradual increase in listing prices throughout the year. With a low inventory and many looking to take advantage of low-interest mortgages, prices have spiked. This is a trend experts expect to see continue throughout the winter. Prices may level out
with an influx of homes on the market when the weather starts to get warmer. Sellers should list now
. Buyers: consider making an offer as soon as possible to avoid paying more later. On the other hand, if you do not need to move ASAP, and are up for a gamble, you could wait to see if prices drop in the second half of 2021.
2. High Turnover Rate
Homes are expected to spend less time on the market this year than in previous years. With less competition and buyers motivated to move, the homes that are
listed tend to sell quickly. This is good news for sellers looking to sell their homes as soon as possible. For buyers, this means you'll need to make competitive offers so you don't miss out on a property that might be perfect.
3. Highly Competitive Seller's Market
Because of the two factors above, buyers may find themselves in a bidding war with other buyers. If you plan to purchase a home in 2021, you need to act fast to get ahead of the competition. With that being said, if it is your goal to buy a home this year, there is at least one big advantage for buyers in 2021: historically low interest rates are expected to stick around through much of the year.
4. The Suburbs are Booming
With many jobs going virtual throughout the pandemic—and more people observing stay-at-home orders due to COVID mandates—many homeowners are recognizing the importance of space. Suburban areas continue to gain popularity as city folks trade proximity to work and attractions for affordable space and bigger yards.
If you are a seller in the Philadelphia or New York suburbs
, this could mean heavy competition for your home. Conversely, with people leaving cities in droves, the need for rental units in urban areas has decreased. This has caused landlords to lower prices and offer better deals. If your dream has always been to live in the city, now might be a good time to take the leap and experience city life while you can.
5. Virtual Realty is a Reality
Post-coronavirus real estate action has seen a major emphasis on virtual accessibility. Buyers expect
to be able to do almost everything online
, from live streams of open houses to tours via Facetime or Zoom. Real estate agents and home sellers have met this demand by offering more online features, like video listings and better digital marketing methods. While many buyers still prefer to see the real thing in person, these new digital trends are likely to stick around as new staples in online real estate.
Experts are saying a housing market crash is highly unlikely for 2021, with a robust seller's market and continual demand for houses for sale. If you have real estate goals for 2021, rest assured the market looks to be strong throughout the year.