At the beginning of the year, industry forecasts called for home price appreciation to slow to about half of the double-digit increase we saw last year. The thinking was that inventory would increase from record-low levels and put an end to the bidding wars that have driven home prices up over the past twelve months. However, that increase in inventory has yet to materialize. The National Association of Realtors (NAR) reports that there are currently 410,000 fewer single-family homes available for sale than there were at this time last year.

This has forced those who made appreciation forecasts this past January to amend those projections. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, the National Association of Realtors, and Zelman & Associates have all adjusted their numbers upward after reviewing first quarter housing data. Here are their original forecasts and their newly updated projections:Even with the increases, the updated projections still don’t reach the above 10% appreciation levels of 2020. However, a jump in the average projection from 5.3% to 7.7% after just one quarter is substantial. Demand will remain strong, so future appreciation will be determined by how quickly listing inventory makes its way to the market.

Bottom Line

Entering 2021, there was some speculation that we might see price appreciation slow dramatically this year. Today, experts believe that won’t be the case. Home values will remain strong throughout the year.

Is it time for you to move into your next home? If you’re reading this post and it’s a thought that’s popped into your mind, maybe this is a sign that you should get moving towards that goal. After all, if not today, then when?

Real estate agents across the United States are adapting their strategies to help clients sell and buy homes amidst Covid-19. From virtual showings to getting creative about transforming spaces into home classrooms and workspaces, there are many ways that top agents are adapting to and staying up on the latest trends to help people achieve their real estate goals. 

Safety first

The number one way agents are adapting is by making the safety of their clients and potential buyers a top priority. For in-person showings, that means tours for one person at a time and keeping a social distance rule of six feet apart. Agents are also asking potential buyers to wash their hands or are providing hand sanitizer at the door, and are even taking it a step up by giving masks to everyone involved. Real estate agents are sharing these safety precautions ahead of time, so there are no surprises, and to ensure top compliance. 

Virtual listings and showings

Another step in favor of safety for everyone is a move to online listings and home tours. For online listings, agents are becoming experts at advising their clients about staging homes to show their best side online. Agents are also working with clients to develop scripts for on-camera showings, to meet with potential buyers one-on-one or hosting virtual open houses. In-person showings are still happening, but they are being reserved for serious buyers only. Another change is giving tours of the neighborhood and outside of homes, until buyers are serious about making an offer.

Getting creative about how to reimagine homes for working

Agents are saying that more than advising their clients about finding homes, they are searching for homes which are also home offices or classrooms. In HomeLight’s Q3 survey, 45% of agents are advising parents who want to turn spare bedrooms or playrooms into homeschool spaces, while 14% mentioned the addition of built-in desks and school supply storage in an extra room. Agents are helping people think creatively when it comes to imagining this new way of being at home. For sellers, that might mean staging a bedroom as a home office, and for buyers picturing where they could create the ideal space for focused work at home. Agents might suggest renovations like built-in desks or shelving, or creating combined guest rooms and offices. 

Staycation-ready homes

Like reimagining homes for working, tips for home improvements from top agents include creating a staycation vibe. Top agents from across the US in HomeLight’s Q3 survey revealed that 76% of homeowners are outfitting their new abodes to be a more enjoyable retreat. Amenities that are top of mind are home gyms, chef-ready kitchens, and upgrading bathrooms for spa luxury. Similarly to the home workspace, agents are advising buyers and sellers about how they might make these changes to their dream homes without breaking the bank, while offering a high return on their investment. 

Agents across the country are constantly adapting their strategies given market conditions, and that is true in 2020 more than ever. If you have any concerns about what you might expect from the market for the rest of the year, your best bet is to ask questions and work with your agent to stay aware of changes as they happen.

How do you show a real estate agent you appreciate them? It’s not flowers , a thank you note, or even dark chocolate.

It’s a referral!

Yep, if you want to make your real estate agent’s heart melt, refer them whenever you can — it’s truly the most perfect way to say thank you.