At this time last year, experts were foreseeing the 2020 housing market would see relatively flat home price growth, tight housing inventory for first-time buyers, and a rise in mortgage rates.
We all now know what happened next: The Coronavirus pandemic.
Although there was an initial pause for homebuyers spring as no sellers were willing to their properties, and no one was thinking about moving, the housing market ended up even hotter than ever. Demand outpaced inventory, leading to an increase in home prices in nearly every state.
While 2020 was an example of how rapidly the economy can change, the housing market has adapted to the “new normal.” The trends we’ve seen over 2020, along with the availability of a COVID-19 vaccine, provides data points for making predictions for the 2021 real estate market. Here’s what Kansas City home sellers and buyers can expect going into 2021:
What To Expect in 2021
- Home values and prices are expected to increase until September, where experts foresee slower economic growth, resulting in lower asking prices.
- A possible wave of foreclosures could also happen in Summertime, and this could flatten price growth.
- With the creation of the COVID-19 vaccine, more homeowners are likely to feel more comfortable listing their homes. Owners who delayed their selling plans in spring 2020 for spring 2021 could increase inventory and lower competition.
- The Coronavirus pandemic slowed down new housing developments last year. In the second half of 2021, there will likely be a surge of new construction projects.
The Remote Workplace Might be Here to Stay
The pandemic has forced everyone to stay at home for more extended periods. Having our homes serve as our office, school, and recreation setting has made many households reconsider their demands. Now that home office is a must; many prospective buyers will be looking for these features while on their house search.
What to Do About It
No one knows what the future holds. However, being on top of the real estate market trends and predictions can help you plan your next purchase or home sale.
For buyers in Kansas City Area:
Kansas City’s strong price appreciation will continue this year— but not quite as fast as it was in 2020. If you want to purchase your first home soon, you will probably have to make an offer above the selling price to get a listing.
Since the market is very competitive, you can also wait and see if prices decrease in 2021. You may have more options and less competition in the second half of the year.
For sellers in Kansas City Area:
If you want to sell your house fast in Kansas, trends are pointing to listing as soon as you can before other sellers and constructions hit the market in 2021.
Take into account that the remote workforce has changed the housing needs of many potential buyers. So, if you are considering selling your home, you might want to stage or adapt rooms to appeal to these relatively new demands.