If you’re looking for a house to buy right now and are having trouble finding one, you’re not alone. At a time like this, when there are so few homes for sale, it’s normal to wonder if you’ll actually find one to buy. According to the National Association of Realtors (NAR), the inventory of homes for sale is at an all-time low across the country. In fact, since NAR began tracking this metric in 1982, it’s at the lowest point recorded. However, more homes are expected to hit the market later this year. Let’s break down the three key places they’ll likely come from as 2021 continues.
1. Homeowners Who Didn’t Sell Last Year
In 2020, many sellers decided to pause their moving plans for various reasons. From health concerns about the pandemic to financial uncertainty, plenty of homeowners decided not to sell last year.
Vaccines are now being distributed and there’s a light at the end of the COVID-19 tunnel. This should bring some peace of mind to many potential sellers. As Danielle Hale, Chief Economist at realtor.com, notes:
Fortunately for would-be homebuyers, we expect sellers to return to the market as we see improvement in the economy and progress against the coronavirus.”
Many homeowners who decided not to sell in 2020 will enter the market later this year as they begin to feel more comfortable showing their house in person, understanding their financial situation, and simply having more security in life.
2. More New Homes Will Be Built
Homebuilders had a strong year last year. According to the National Association of Home Builders (NAHB), 2021 is expected to be even better:
For 2021, NAHB expects ongoing growth for single-family construction. It will be the first year for which total single-family construction will exceed 1 million starts since the Great Recession.”
With more houses being built in many markets around the country, homeowners looking for new houses that meet their changing needs will be able to move into their dream homes. When these homeowners sell their current houses, opportunities for those looking for a home that’s already built will be created. It sets a simple chain reaction in motion for hopeful buyers.
3. Those Impacted Financially by the Economic Crisis
Many experts don’t anticipate a large wave of foreclosures coming to the market, given the forbearance options afforded to current homeowners throughout the pandemic. Some homeowners who have been impacted economically will, however, need to move this year. Some homeowners didn’t take advantage of the forbearance option or were already in a foreclosure situation before the pandemic began. In those cases, homeowners may decide to sell their houses instead of going into the foreclosure process, especially given the equity in homes today. Lawrence Yun, Chief Economist at NAR, explains:
Given the huge price gains recently, I don’t think many homes will have to go to foreclosure…I think homes will just be sold, and there will be cash left over for the seller, even in a distressed situation. So that’s a bit of a silver lining in that we don’t expect a massive sale of distressed properties.”
As we can see, it looks like we’re going to have an increase in the number of homes for sale in 2021. Based on the above three factors, there’s hope if you’re planning to buy this year. And if you’re thinking of selling and making a move, doing so while demand for your house is high might create an outstanding move-up option for you.
Housing demand is high, and supply is low, so if you’re thinking of selling, it’s a great time to do so. There are likely many buyers who are looking for a home just like yours, and there are options coming for you to find a new house too. Let’s connect today to see how you can benefit from the opportunities available in our local market.