Dr. Abisoye Ariyo has watched the residential real estate market throughout 2020 and 2021 with intense interest. This market has shifted and changed in many ways and has stabilized into a pattern that it’s likely to maintain for the rest of the year. That’s why he recently gave a talk on the state of real estate in 2021 and what home buyers and sellers can anticipate in the following years.
What Dr. Abisoye Ariyo Thinks of Residential Real Estate in 2021
The biggest takeaway from 2021 and residential real estate is that it is still a seller’s market. Dr. Abisoye Ariyo has seen that fewer homes are coming out on the market – inventory was down by a staggering 30% in the first few months of the year), meaning that what is available is often hard to buy. And do you know what happens when supply is low, and demand remains high?
Prices will keep going up, and homes will sell much more quickly. For example, it was found in the spring of 2021 that homes were selling, on average, 20 days faster than in previous years. This fast rate means that homebuyers don’t have a lot of time to seriously consider a home before putting in a bid. They may quickly find their dream house leaving the market at prices that they just can’t afford.
However, home sellers are a great place right now because home prices are higher than ever across the nation. For Dr. Abisoye Ariyo, this isn’t necessarily a good thing. Higher prices can often lead to a stagnant market and a hard entry-level option for many first-time home buyers. These prices have grown by 20% compared to 2020, up to a national median of around $300-400K.
That said, buyers aren’t facing just high prices and a rocky road to homeownership. That’s because interest rates are incredibly low. In fact, they are among the lowest that they’ve been in 30 years, meaning that home buyers could still somehow get ahead. How is that possible? With low interest rates, their home value may balance compared to higher overall selling prices.
However, Dr. Abisoye Ariyo also finds that third-party buying and selling has become even more popular in these strange real estate times. Companies like Zillow help set both buyers and sellers up with an easier transition process and advertise properties at reasonable prices. Such services are only going to become more popular due to the continued presence of COVID-19 in the world.
All in all, there is some very good news and some questionable news for the real estate market in 2021. Sellers will continue to have a field day as buyers struggle. Thankfully, there doesn’t seem to be any type of real estate market collapse on the horizon. Even though these historic high prices can’t hold into the future, it isn’t likely that we’ll see a return of the type of 2008 crash that crippled the market.