Realtors Share Their Predictions for the 2021 Fall Housing Market

Don't you just wish you had a crystal ball to predict the housing market?   HomeLight just published their Top Agent Insights 2021 Year-End Report after surveying more than 1,000 top real estate agents across the country on the shifting state of the housing market as we approach 2022. 

This report covers everything from steep bidding war declines, spikes in multi-generational housing, to the surprising rising popularity of golf community properties among 30-40 year olds! Agent's responses paint a curious picture indicating how the pandemic has shifted what “home” means for retirees, their families, and millennials on the heels of a housing frenzy.

I think you will find this information very useful as you navigate the housing market and make decisions for the year to come!

Please know that I am always here to answer any of your real estate questions.  If I can be of service to you, please contact me at your convenience.

Here are a few of the predictions:
Realtors Share Their Predictions for the 2021 Fall Housing Market

Today’s housing market is on shaky ground, but real estate experts share their predictions regarding what the market will be like throughout the rest of 2021.

Across much of the country, it continues to be a strong seller’s market, but times are beginning to change and, according to top agent insights, it may not be that
way for too much longer. There are a variety of factors at play that’ll cause a shift in the housing market, but here’s a brief look at what realtors feel will have the
biggest impact.

Contingencies are back 
For the past year and a half, housing prices increased to astronomical heights, which caused a big disparity between what the house was actually worth and what
the house would sell for. At the height of this phenomena, buyers weren’t too concerned about the price because the low interest rates saved them some money. However, now that rates are set to increase and buyers are growing wary of the extremely competitive market… They’re going back to including contingencies with their offers. 

These contingencies, namely home inspection and home appraisals, are back on the
table because they want to make sure that the property is worth the money that’s being asked. If the buyer doesn’t agree with the reports, they can use those
contingencies as a way out of the contract.

Housing prices will decline, albeit slowly 

With buyers wanting to have home inspections and home appraisals again, nearly half of surveyed realtors reported that housing prices will be on the decline. This could be a catalyst that causes sellers to bite the bullet and put their homes on the market in an effort to get as much as they can for their property.

Housing inventory continues to struggle to recover 
The housing market has struggled to keep up with buyer demand and that is still the case today. Yet when we take into consideration the declining home prices and the improving public health crisis, inventory may be able to meet demand sooner than expected.

Effects of lifting the foreclosure moratorium is still unknown
Although it’s been quite a while since the foreclosure moratorium has ended, we still don’t know what kind of impact it will have on the market. About 9% of
respondents reported they are seeing an increase of pre-foreclosures in their market, but experts also believe this housing crisis won’t be as bad as it was in
2008. Fingers crossed, anyway.

Savings from frugal living amid pandemic create new buyers
Many aspects of our lives have had to change and while we could go out and spend money on recreational activities and the like, many of us adopted a frugal lifestyle -
at least for the time being. 46% of realtors predict many new buyers will have been able to put their would-be recreational spending aside for that down payment and
other costs associated with buying property. 

Buyers with stock market and familial wealth have the upper hand
Along with frugal savers, 45% of real estate experts believe new buyers will turn to wealthy family members or pull from a trust fund to help buy. But on the other
hand, 37% of respondents also reminded us that the stock market has been doing very well. These experts expect those who’ve invested in stocks and have done well
will start liquidating their stocks in order to buy property.

Buyers aren’t falling for bidding wars
Up until now, bidding wars were a very common occurrence in many markets across the country. Realtors today are saying bidding wars are on the decline and even if a property does receive multiple offers, they’re nowhere close to the dozens of offers they’ve seen properties get just a few months ago.

What is in store for the 2022 housing market?
Buying or selling property isn’t something you should dive into on the fly, so it’s always useful to keep an eye out for realtor insights like these. While we can’t say for certain what the future of the housing market is going to look like in the new year, experts do predict that housing prices will decline (as well as bidding wars, thankfully) and inventory will replenish in time.

If you’re wondering if it’s the right time to buy or sell, don’t hesitate to contact your local real estate pro to ask for their advice! They can give you the real scoop about your local market and you can make a well informed decision