2020 went through significant changes very quickly. Contrary to initial expectations, housing markets all over the country made a strong comeback after an initial slump early in the year due to the onset of the pandemic and the statewide lockdowns that ensued.
It appears that 2021 will carry over positive trends from the previous year, albeit, in a more subdued way. Many experts project continued growth.
Whether you’re currently in the market or still on the sidelines, here are some trends you can expect to persist throughout the year.
Gradual economic recovery nationwide
While the vaccine rollout assumes greater reality, the country’s economy is expected to recover in the second half of the year. This recovery will lead to more employment as businesses slowly open new positions to be filled. Though recovery nationwide won’t be quick, it’s expected to hold a steady course, building confidence in those watching it and quieting fears of high inflation.
Several other carry-over trends are influencing the real estate market. Businesses are flocking to states with lower taxes, increasing buyer demand in those areas as working professionals follow suit. Interest rates remain low and will only increase slightly, keeping buyer’s eager to buy homes. The vaccine rollout itself is expected to pump the brakes on the rise of home prices, bringing projected growth rates in the range of 2% to 6% for the year.
More homes will also become more available in the summer and fall as sellers become more confident about putting their homes up for sale. And relocating will still be a major trend because of the continued need for social distancing and working or studying remotely.
High buyer demand in coastal Mississippi
For much of 2020, Mississippi’s Gulf Coast was in strong seller’s market territory. Low interest rates (at times dipping below 3%) and a limited supply of homes for sale at any given time contributed to conditions that favored sellers over buyers.
In 2021, coastal Mississippi will still benefit from the major trend driven by the pandemic: a concentrated move away from the cities and into the suburbs for less exposure and more space.
Buyers are also choosing the state’s Gulf Coast region for the warm weather, low property taxes, and relative affordability compared to other coastal areas. Bankrate.com’s recent ranking of housing markets placed Mississippi in the top spot for cost of living, third for job growth, and number 29 overall in a comparison with other states and Puerto Rico.
The importance of technology, space, and separation
Working from home taught us to stay put and stay tuned to our computers. To accommodate this persisting change, realtors had to and continue to communicate primarily over email or text and leverage social media and local MLS sites to find buyers or sellers for their clients.
On the home front, buyers and homeowners alike yearn for additional space. Many want enough room to allow each family member to spread out and claim divided spaces. Open floor plans are steadily losing favor, while traditional layouts are enjoying renewed popularity.
Spacious and secluded outdoor areas are also becoming an in-demand feature in homes. And because household members are almost always at home, many are prioritizing appliances and home features that consume less energy and resources.
It’s no surprise that suburban areas will enjoy the most attention from buyers and developers for offering a trifecta of affordability, space, and safety.
Eager, savvy buyers and enterprising sellers
Based on last year’s trends, a majority of homebuyers in 2021 will start their home search online while another 30% will turn to an agent for their first step into the process.
Even though affordability and limited inventories will continue to be obstacles for buyers, they will commit to homes that are priced right and let those with subpar amenities go stale. Virtual tours and remote ways of viewing the property will continue to define buyer experience for the year, and sellers and agents are expected to meet these demands to increase traffic and interest in a listing.
2021 will favor sellers. Many of the ones participating in the market now can expect their homes to sell just a hair under their listing price should price reductions occur. Sustained buyer demand makes listed homes last an average of three weeks on the market until a buyer makes an offer and starts closing.
Looking for homes for sale in Biloxi, MS? Consult with us at Owen and Co., LLC Real Estate! Team up with one of our experienced Realtors and explore your options on Mississippi’s Gulf Coast. Call us today at 228.822.9870 or send an email at info(at)owenandco(dotted)com!
