Now that all Americans are eligible for the vaccine, experts are bullish about residential real estate in 2021.
Driving the news: Zillow’s recent Home Price Expectations (ZHPE) survey shows inventory should pick up once more people are vaccinated.
- Many potential sellers have been waiting to put their homes up for sale until COVID trends improve. And with more Americans vaccinated, the time could be soon.
Flash back: Earlier this year David Hoffman, owner of DHG Group said “If you said give me a 10-second headline for 2021 it’s ‘Real estate signs are going to flood the streets in 2021.'”
Dickens Mitchener founder Vicky Mitchener, who’s been in Charlotte real estate for 33 years, also predicted vaccines would lead to more showings.
Yes, but: Demand and home prices will continue to increase too.
The big picture: Throughout the pandemic, with many people working remotely, there’s been a big emphasis on home. That, paired with historically low mortgage rates, has caused home-buying demand and home prices to surge.
- 95% of the experts who participated in the ZHPE survey think the preference for remote work is permanent.
By the numbers: Canopy MLS data show more new listings each month in Charlotte, but overall, inventory can’t keep up with demand.
- In March inventory was down 71.4%, with less than a month’s supply.
- Homes sold in 24 days on average in March 2021, twice as quickly as last year.
- Median sales price was $305,000, up 12.1%
What’s next: More than 50% of ZHPE panelists expect inventory to grow in 2021.
- A Zillow study from earlier this year found that 70% of homeowners would be more comfortable moving with widespread COVID-19 vaccine distribution.
Realtor.com’s most recent survey shows the timeline might be a bit longer. Their data shows 26% of homeowners plan to list their houses within the next three years.
- Only 10% of those homeowners are planning to put their home on the market this year.
Bottom line: Charlotte may be crawling out of its inventory slump, but demand will likely continue to outpace supply. Which means buyers will still face a competitive, expensive market.