With 2020 officially behind us, investors, buyers, and speculators all have their eyes on the horizon to catch a glimpse of what 2021 might bring to their local housing markets. To get a jump on the competition, let’s take a close look at what Seattle home sellers can expect from the real estate market in 2021.
It should come as no surprise that 2020 put a dent in the average homeowner’s willingness to attempt moving into a new home.
Early on, we were all dealing with the unknown elements of COVID-19, and the potential consequences we all could experience. Due to the new uncertainty and constant need to readapt as time went on, a lot of homeowners opted to stay put and wait for things to calm down before investing time or money into making a home purchase.
The unwillingness to dive into the market has led to a very limited selection of properties to buy for the time being. This means, if you decide to put your home up for sale, it’s got the potential to attract more attention and offers than in other years.
Refinancing Is a Priority
Since owners weren’t looking to buy and move into a new home, they instead turned to the mortgage lending industry to help lighten the financial load over the long term.
The Federal Reserve slashed and maintained incredibly low interest rates throughout 2020, and this provided a spectacular opportunity for owners to spend a bit more now to save bundles over the remaining term of their home loans. Granted, the savings from refinancing are dependent on the terms of the original loan mixed with a given lender’s refinancing fees, so the adjustment to interest rates did not completely remove the market demand, but did stymie it for a short period of time.
Prepare for the Home Buyer Rush
As we have acclimated to the new reality that set in through 2020, our comfortability with circumstances slowly grew over time.
Some potential buyers may have pushed through the complications created by COVID-19, but quite a few hunkered down and decided to wait for a better time that posed fewer dangers to themselves and others.
Considering the market stalled during the early stages of the COVID-19 outbreak, we are expecting to see things pick up rapidly as we enter the first few months of 2021. The would-be buyers that put things on hold and have been fortunate enough to save even more during 2020 will be coming back out with a newfound enthusiasm to meet that homebuying goal by entering the real estate market in 2021.
The largest mitigating factor to the abundance of caution is undoubtedly vaccine distribution, which is already ramping up quickly.
Demographics Are Shifting
One of the largest changes we saw amongst home buyers in 2020 was Millennials coming out in droves to purchase their first or second homes.
It is estimated that Millennials were impacted less than most other age groups because of the stability of the service industry in the jobs market. Steady employment mixed with reduced expenses has given this generation an occasion to build up their savings and become the major purchasing block of the national housing market.
This means paying attention to the wants and needs of Millennials, who are marrying and starting families later than previous generations. Close proximity to entertainment and shopping are always helpful, but are an extra boon to a home seller looking to attract this next group of flourishing buyers.
Guidance for Seattle Sellers in the Real Estate Market in 2021
After the uncertainty of the past year, many home sellers are looking to get their properties ready to go on the market soon. If you’re looking to enter the Seattle real estate market in 2021, contact us today at (206) 578-3438!