Will There be Homes to Buy This Year?

Struggling to find your dream home to buy? You’re not alone.  

According to the National Association of Realtors (NAR), the current inventory of available homes for sale across the country is at an all-time low – the lowest point recorded since NAR began tracking this metric in 1982. There are, however, more homes expected to hit the market later this year. We are going to break down the three key places they will likely come from as 2021 goes on.

1. Homeowners Who Didn’t Sell Last Year

Last year, many sellers decided to put their moving plans on hold for a number of different reasons. From health concerns about the pandemic to financial uncertainty, plenty of homeowners decided not to move last year.

Since the distribution of vaccines has begun, we are now seeing the light at the end of the COVID-19 tunnel. This should bring some peace of mind to many potential sellers. As Danielle Hale, Chief Economist at realtor.com, notes:

“Fortunately for would-be homebuyers, we expect sellers to return to the market as we see improvement in the economy and progress against the coronavirus.”

Many of the homeowners who decided not to sell in 2020 will enter the market later this year as they begin to feel more comfortable showing their house in person, understanding their financial situation, and simply having more security in life.

2. More New Homes Will Be Built

2020 proved to be a strong year for home builders, and according to the National Association of Home Builders (NAHB), 2021 is expected to be even better:

“For 2021, NAHB expects ongoing growth for single-family construction. It will be the first year for which total single-family construction will exceed 1 million starts since the Great Recession.”

New houses are popping up across the country, which means homeowners looking for new houses that meet their changing needs will be able to move into their dream homes. In turn, when these homeowners sell their current houses, this will create opportunities for those looking to find a home that’s already built. It sets a simple chain reaction in motion for hopeful buyers.