We’ve had a lot of questions about our thoughts on the 2021 real estate market. Will the election results have a big effect? What if the economy tanks again because of the pandemic? Will that turn us back into a buyers’ market? Do I need to sell as soon into 2021 as possible? Will inventory be low again, helping me out as a seller?
Whew!
We understand. But we’re happy to tell you, things are still looking strong for 2021! Here’s a summary of what we know:
It’s Still Time to Sell!
Every major economic indicator points to increasing home prices in 2021, AND, inventory is still tight, which means, you can get more for your home because options are limited!
Why is inventory low? A few reasons:
- The Midwest is seeing an influx of people from the west coast (read our blog here for our thoughts on that).
- Now more than ever, there is so much buyer demand for a home office, space to home school, workout rooms, recreation space outside and another bedroom (for in-laws).
- Kansas City is and will continue to grow. In 2017, transplants helped the region’s population break two million, and the Mid-America Regional Council projects the area will add almost half a million more residents by 2040.
We don’t anticipate the supply issue being corrected for quite a while, so we predict it being a seller’s market for some time. The pandemic didn’t slow us down last year; in fact, we sold more homes than ever. We sold homes before they even went on the market! Thankfully, because of our large network and years in the industry, we constantly have clients looking that we have top of mind to buy your home.
Interest Rates are Still Low
It may be considered a “seller’s market,” but it’s also a great time to buy, because interest rates plummeted last year, and according to our sources, they should stay stable through 2021.
If you’re a first-time home buyer, don’t be intimidated by the low inventory. Just know you’ll probably need to act fast once you find that home you can’t live without. We always recommend being pre-approved for your home loan first(and if you’re not sure what kind of loan you’ll need, take a look at our breakdown of home loans).
What We Learned From the Pandemic
The pandemic hasn’t changed the way we’ve done things, necessarily, but it’s certainly streamlined them. Although in-person home tours, consultations and open houses are starting back up, we are still available to make all things virtual.
The pandemic didn’t affect the housing market, just the supply chain. So new construction slowed down and prices were higher because of supply costs.
Because of COVID-19 and its effects, people expect more out of their houses more now than ever, and they’re ready to trade up.Do you feel better now reading that information? We feel excited bringing it to you! The Kansas City real estate market is going strong. You can buy now and still gain equity during this low inventory time, and you can certainly sell and pocket quite a bit to put towards your next home. As one of the top real estate teams in Kansas City, we want you to know you can trust us with this big decision. We know and love our city and are ready to help you find your home.