Home buying has been on a rising trend in the key real estate market in recent years. Growth was particularly strong in the few years leading up to the pandemic. Cycles of listing volume were peaking in the post-summer months, but 2020 broke the pattern. Here’s a look at the economic conditions involving the number of homes put on the market in the early 2020s.
2021 Opened with Record-Low Home Listings
Normally, the real estate market sees an increase of home listings around March through about October before inventory declines. In April 2020, there was a slight increase to a peak, followed by progressively fewer listings for the remainder of the year. Active home listings began to decline as the pandemic broke out in 2020. This trend of low inventory continued throughout the beginning of 2021.
Current Market Trends
Buyers and sellers had limited options last year and at the beginning of this year, but with most of the population getting vaccinated, homeowners are becoming more comfortable selling their properties. Demand has grown for new construction, as new homes give buyers, sellers, and real estate investors more options.
When the forbearance program ends, experts believe there will not be an explosion of foreclosures. The strongest indicator of this forecast is the number of current equity homeowners hold. While there will be foreclosures, more American homeowners will be in a good position to sell their homes.
Home Inventory Outlook for 2022
Looking ahead to 2022, real estate industry experts expect a return to normal inventory patterns with increased but still limited listings. Many investors are considering selling their rental properties to take advantage of the spike in home prices through the early 2020s. However, industry experts are also focused on limited inventory as a metric that closely relates to sustained high prices.
Rising prices challenge home buying. Nonetheless, the shift toward working at home has created new opportunities for first-time home buyers. Low mortgage rates further contribute to advantages for purchasing a home. As economic activity returns to normal, there will be increased opportunities for both sides of the housing market to grow and prosper.
Inventory on the home market remains limited but is expected to return to normal pre-pandemic patterns. Listings typically rise throughout the year in the third quarter. All signs point to good reasons for investing in a home in the near future. If you want to gain deeper insights on real estate, contact the experts at Brighton Escrow today. We welcome you to explore our top-tier escrow service.
