Throughout the coronavirus pandemic, the housing market in the United States has been red hot, with the majority of real estate agents reporting that bidding wars were at all-time highs in their territory, and homes selling so fast that buyers were even waiving pre-purchase inspections. Many of these situations were caused due to unprecedented demand, combined with a lack of inventory due to many individuals and families choosing to shelter in place.
While there’s now more inventory on the market which has led many homeowners to reduce the asking prices of their home, HomeLight reports in their Top Agent Insights for End of Year 2021 report 95% of real estate agents report sellers market conditions in their area, which is significantly up from pre-pandemic times (55% in Q3 2019).
While understanding the housing market can seem overwhelming on the surface, you can get top dollar for your home and make a quick sale by understanding the following essential trends in the market.
Buyers have plenty of wealth to sustain high prices
Thanks to pandemic savings—cash stashed aside instead of being spent on concerts, vacations, and work wardrobes—along with historically low mortgage rates, 46% of agents report that buyers are able to afford homes in the current environment.
In addition to savings from curtailed spending during COVID lockdowns, 45% of real estate agents are seeing buyers turn to financial support from relatives or generational wealth to fund their home purchase. Considering those points, it makes sense that agents are remaining optimistic about the current housing market.
It’s important to invest in the outdoor experience
Now that many individuals and families are spending more time at home, homebuyers are looking for properties where they can enjoy hanging around outside. Nationally, 65% of real estate agents have said that since March 2020, there has been a significant increase in buyer interest for outdoor fireplaces, even in warmer regions.
Keep in mind that fire pits are not the same as an outdoor fireplace. Many buyers are looking for elaborate standalone structures that are made of rock and other durable materials. Should you get a
wood or gas burning fireplace? HomeLight reports that agents are split with 48% of agents recommending gas fireplaces, while 44% opt for wood burning. Ultimately, however, every market is different so you’ll want to consult with your own realtor as to what works best in your market.
Golf has gone mainstream
An interesting trend during the coronavirus pandemic has been the surge of interest in golf, with many country clubs now requiring prospective members to wait for openings. In fact, since March 2020 the value of homes within golf communities have increased 48% nationally from $16,174 to $24,002.
Even if your home isn’t within a country club, you can still sell your home quickly by highlighting the recreational opportunities and things to do in your area. After all, not everyone is interested in golf, and most individuals and families prefer variety in their lives.
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