Are there going to be more homes to buy this year?

Are there going to be more homes to buy this year?
Dana Ehrlich:
All my clients are asking me, “Dana, are there going to be more homes to buy this year?”

I
f you’re looking for a home to purchase right now in Los Angeles and you’re having trouble finding one, believe me, you’re not alone!

At a time like this when there are so few houses for sale, it’s normal to wonder if you’re ever going to actually buy one and find one. According to the National Association of Realtors, across the country, inventory of available homes for sale is at an all-time low…the lowest point recorded since NAR began tracking this statistic 40 years ago! The silver lining is that homes are expected to start creeping on the market.

So let’s break down the three key places that they will likely come from as the year continues to go on.

#1 Homeowners who didn’t sell last year.

In 2020, many sellers decided to pause their moving plans for a variety of reasons – from health concerns about the pandemic, to financial uncertainty. Plenty of homeowners just put the pause button on their move. And now that the vaccines are being distributed and there’s a light at the end of the COVID-19 tunnel, it should bring some peace of mind to many potential sellers.

Danielle Hale, the chief economist at realtor.com said, “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.”

Now, 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 their life.

#2: More homes will be built this year than last year.

It was a really strong construction year last year, according to the National Association of Home Builders, but 2021 is expected to be even stronger. They’re saying that it’s going to be the first year where the total single-family construction will exceed one million starts since the great recession, so with more houses being built in many markets around the country, homeowners looking for new houses that meet their changing needs are going to be able to move into their dream homes, and when they sell their current home, they will create opportunities for those looking to find a home that’s already built to do so, so it just sets off this chain reaction and motion for hopeful homebuyers.

#3: Those impacted financially by the economic crisis.

Many experts don’t anticipate a large wave of foreclosures coming because of the forbearance offers that were made to a lot of people during the pandemic, but some owners who have been impacted economically will need to move this year. There are also homeowners who didn’t take advantage of the forbearance options or who were already in a foreclosure situation before the pandemic began. In those cases, homeowners may decide to sell their houses instead of going into foreclosure, especially given the equity in their homes today.

Lawrence Yun is the chief economist at NAR and he said, “Given the huge price gains recently, I don’t think many homes will go into foreclosure. I think homes will just be sold and there will be cash left over for the seller, even in a distressed situation,” so there’s a bit of a silver lining in that we don’t expect to see a massive set of distressed properties.

So it looks like we’re going to have an increase in the number of homes for sale in 2021!

With fears of the pandemic starting to ease, new homes being built, more listings coming to the market prior to foreclosure, there’s hope if you’re planning to buy this year, and if you’re thinking of selling and making a move, doing so while demand for your house is high might create an outstanding move-up option for you.

In fact, if you’re wanting to trade up – or downsize, for that matter, but you need to sell in order to buy, we should have a chat because I have a way to solve your dilemma so you don’t have to be writing offers contingent on the sale of your current home, which sellers really don’t like, especially in a super-hot market.

The bottom line: Housing demand is high, supply is low, and if you’re thinking about moving, it’s a great time to do so. There are likely many buyers who are looking for a home just like yours and there are options coming for you to find a new house as well.

Call me, text me, email me today, see how we can work together and how I can benefit you in looking at opportunities available to you in the market.

I’m Dana Ehrlich with Mint Real Estate. I specialize in residential real estate in Los Angeles. I help baby boomers and their aging parents sell their single-family homes, condos, two to four-unit rental properties based on your wishes and your priorities. Whether it’s a distressed property or an unwanted property that you’d like to sell fast for cash, as is, or you’d like to squeeze maximum equity out of your property, I can offer you some refreshingly innovative options and I’m available to headbang and help you solve your real estate problem, so let’s chat soon.
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