With the year anniversary of the COVID-19 pandemic in mid-March, now is a great time to reflect on the effects of the pandemic on the American housing market. Though the spring of 2020 saw a huge decline in the demand, as well as the supply, of houses on the housing market, it began to bounce back in the summer. By the end of 2020, the housing market came out stronger than ever. So what does that mean for 2021?
Though there were some setbacks for the housing market at the beginning of 2021, we are already seeing some general 2021 trends for the housing market, particularly in Illinois and the midwest region. Here are some of the 2021 trends for buying or selling a home:
- Pricing. Median prices of homes in Illinois are generally growing, with a higher and broader range when compared to median prices in 2020. Expect prices to keep getting higher, and more houses on the market to be at a higher price point, as the demand for homes in wealthier suburbs becomes greater.
- Foreclosures. In Illinois, particularly in the Chicago Metro area, foreclosures were particularly high during 2018 and 2019. During 2020, however, foreclosures seemed to dramatically fall, most likely due to the federal moratorium on evictions, foreclosures, and mortgage payments. As the vaccine rolls out and the economy hopefully recovers, it will be interesting to see how the foreclosure trend plays out in 2021. This is one thing to watch for sure!
- Market Supply and Demand. Because of the pandemic and stay-at-home orders, there was a sharp decrease in housing inventory, even more so than years before. Since the pandemic is still ongoing, it is likely the market supply of homes could remain low, even with the vaccine rollout.
- Relocation. Homeowners are likely to move out of urban areas and into more suburban areas where they can get more space. This is especially true for middle-to-high income households, who are likely seeing an increase in income. Smaller households may choose to relocate into more urban areas where they can easily access all of the things a city has to offer.
Looking to relocate during the pandemic? Choose a real estate agent that will genuinely take the time to understand your wants and needs. Contact Sandy Majetich-Toth at 815-791-2215. I can help you in your search for a new home, or help you sell your current property. Let’s get started today!