Over the last year, many people veered from buying a home. Due to the ill effects of the pandemic, both prospective buyers and sellers thought long and hard. Ultimately, the economy went into a downward spiral for a few months. However, with the massive rollout of COVID-19 vaccines, will 2021 prove any better for the U.S. housing market?
What the housing market looks like in 2021
While anyone might think that COVID-19 has put a lot of strain on the U.S. housing market which caused the housing shortage, the problem has started long before the virus broke out. According to experts, the U.S. housing market has struggled to keep up with the demand. That means the pandemic has only exacerbated an issue that has long existed. Moreover, millennials are getting married and building families. This, in turn, increased the number of buyers but not the supply. On the other hand, the current market still holds a lot of surprises. 2021 could potentially be a breakthrough year but things are yet to unravel. If you plan on buying a home, check with your real estate agent for a list of possible options.
Problem #1: Housing inventory remains low
According to Zillow economist Matthew Speakman, “Currently, there are fewer than three months of supply of homes on the market, the lowest on record since the turn of the century.” Last year, the shortage of houses reached 2.5 million units. Despite the roadblocks, experts are cautiously optimistic about 2021.
A construction boom could be underway this 2021. Experts say that new construction single-family homes could go over 1 million this year. The last time construction on single-family housing went beyond a million was during 2007. Renewed interest in homes that offer more space is perking up construction. This year might just be a boon for first-time buyers. However, it is advised to seek the services of Myrtle Beach real estate agent to help weigh in on current housing conditions.
Problem #2: Construction hurdles remain
National Association of Homebuilders senior vice president and chief economist, Robert Dietz, says that the slow growth of the housing inventory will remain if no changes are made. Both the construction industry and the government need to work on changes to speed up the addition of new houses in the market.
Supply costs have skyrocketed due to the lumber tariffs. However, if the Biden administration can cut a deal with Canada, supply costs may ease up. Of course, such a monumental change will be left to the government alone. It’s up to the new administration to step up and make instill changes that aim to improve the condition of the U.S. housing market.
How can buyers find good deals on homes in 2021?
Although nowadays, options are limited for homebuyers, all hope is not lost. There are still ways on how you can find a good deal on a property you might like. First of all, hire a professional like Full Potential Real Estate. Buying a house is tougher without expert help. In this day and age, you need all the help you can get, and hiring a real estate agent is one of them. Here are some other tips to help you out:
Go beyond the suburbs – if you are looking for a good deal, expand your search. Most suburbs are already jam-packed with people trying to live as close to the city with minimal compromises. If your financial capacity is on the lower end, go farther away from the city.
Prepare your finances first – before you start looking for a house, be sure your finances are all in check. With or without the pandemic, your finances must be all set before you can buy a home.
Always take your time – if there’s one key takeaway from everything that’s happening nowadays, it’s to take your time with every decision you make. That goes especially for major decisions like buying a home.
If you need help with buying or selling your property, hire Full Potential Real Estate. We can help you with everything in real estate. You may reach us at (843) 492-4537.
Full Potential Real Estate, LLC
Myrtle Beach, SC 29577