COVID-19 has wrought some serious side effects on many aspects of our lives and we don’t know for sure what the long-lasting effects will be. Real estate in particular is in a bit of a grey area because real estate agents are worried about the ever-shrinking housing inventory. Approximately 94% of real estate agents who participated in Homelight’s Q1 2021 survey say inventory in their market is getting worse!
Decreasing inventory sparks concern among agents
One of the main reasons inventory is so low is that would-be sellers aren’t listing their homes because they don’t want to have to worry about finding a new house. Not only do sellers not want to struggle to try to find a new home, but 69% of agents also say would-be sellers aren’t selling because there aren’t enough people selling! How’s that for a head-scratcher?
With that said, 35% of real estate agents are optimistic that seller activity will increase as we head into spring and summer. The downside of this is that 76% of surveyed agents believe the warmer seasons will encourage buyer activity as well.
Competitive markets lead to bidding wars
The lack of inventory means buyers are fighting tooth and nail for the house of their dreams. They’re so competitive, 67% of agents fear their clients are going so far as to make overpriced offers so they have a better chance of getting the home. Housing is so tight and the competition is so fierce, bidding wars are breaking out all over the country and as buyers get outbid, 24% of agents predict homeownership will become an “exclusive club” instead of the American dream.
Real estate has a bleak future if inventory continues to diminish
Despite the lack of inventory, 31% of agents believe that housing inventory will begin to recover once we reach herd immunity. But on the other hand, 26% believe the vaccine distribution will be the driving factor of an improving market. Whatever the case may be, if you’re going to venture into the market as a buyer, you’ve got quite a challenging road ahead. But, if you’re a seller… Well, the market is definitely in your favor!