How Will The Vaccine Affect Home Sales

How Will The Vaccine Affect Home Sales

After COVID-19 contributed to an unparalleled hot housing market in 2020, many are wondering what the impact will be on real estate now that vaccines are being rolled out in phases. While our world won't magically go back to pre-pandemic "normal," there will be many positive rippling effects on the housing market, according to Realtor.com

While there was a significant shortage of resale homes available in 2020, that inventory is expected to slowly increase throughout 2021. As more of the population is vaccinated, Americans will feel safer about listing their homes and looking for move-up houses. Baby boomers in particular were reluctant to sell their homes during the height of the pandemic, but are more likely to move forward with downsizing. 

Ne home construction also ramped up during the pandemic, and the chief economist for the National Association of Home Builders predicts that 1 million single-family homes and townhouses could be built this year. This will also contribute to the inventory available for home buyers. 

However, an increase in seller confidence also means more buyers entering the marketplace. While listed properties may not go flying off the shelves as quickly as last year, buyer competition will still be a big factor in the market. In comparison to the days of 6% mortgage interest rates, even slowly increasing rates will likely hover around 3%, continuing to entice younger generations to become first-time homeowners. 

The price of homes also increased in 2020, and while prices aren't expected to level off. More houses on the market means fewer bidding wars driving up pricing among potential buyers, but the continued high demand for housing will keep pricing from dropping. 

This year's real estate market will likely level off to more of a middle ground.  

"We're going to settle somewhere in between where we were before COVID and where we were during COVID"


Karin Waterschoot-Perez Headshot
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Phone: 614-774-1741
Dated: April 8th 2021
Views: 610
About Karin: Executive Vice President of Sales Experienced Realtor, Karin Waterschoot-Perez, currently serves ...

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