Introducing The Next Luxury Home Seller

The North American residential real estate market is red hot. The past year has seen record-low inventory and surging demand, which has continued through the first half of 2021. In nearly every market situation, there are homeowners willing to sell. The key lies in having the ability to identify which segments of consumers fall within this group. In a new consumer trend report, The Next Luxury Home Seller, Engel & Völkers taps into EVI, our proprietary data center, to identify the trends, demographics, and mindsets of North American luxury homeowners who plan to sell in the next year. 

EVI has identified four distinct segments of Millennial and Gen X luxury home sellers that will drive luxury real estate sales throughout 2021 and 2022: the Wealthiest Millenials, Millennial Entrepreneurs, Covid HENRYs, and Early Retired Gen Xers. 

The Wealthiest Millennials

More than 65 percent of Millennials with household incomes above $250,000 USD plan to sell a home in 2021 or 2022, accounting for more than half of all home sellers within this wealth demographic. However, the Wealthiest Millennials are not fleeing the cities. The reality is quite the opposite—60 percent reported the desire to purchase in cities. Instead of relocating from suburban or rural environments, this sentiment actually represents a shift of priorities among the Wealthiest Millennials. Eighty-three percent already own properties in urban cities, and an overwhelming 96 percent said that their parents currently live with them or that they believe their parents will move in with them in the future. This suggests that the Wealthiest Millennials are staying in urban environments and looking for spaces that can better accommodate current or future multigenerational living.

Millennial Entrepreneurs

Millennials account for two-thirds of luxury home sellers who are also in the process of starting a business. No longer constrained by the limits of a physical office, remote work has given Millennial Entrepreneurs the flexibility to lead their companies from anywhere in the world. As a result, 29 percent of Millennial Entrepreneurs are relocating to new areas. While most of this cohort prefers living in an urban city, a significant 28 percent want to move to rural areas, reflecting Millennial Entrepreneurs’ family-oriented mindsets. Individuals within this segment are more likely than their peers to be married, living with a partner or young children, or responsible for the care of at least one parent. Perhaps it is not surprising, then, that 83 percent of Millennial Entrepreneur home sellers are committed to changing their lifestyle because of the pandemic to ensure they are never separated from their families again.

Covid HENRYs

HENRY is an acronym for “High Earners, Not Rich Yet” and refers to young professionals who have an annual household income between $100,000-$250,000 USD. Covid HENRYs consist of the members of the Millennial and Gen Z generations who emerged from the pandemic within this salary range yet haven’t amassed the same amount of wealth as older generations who have been in the workforce longer. More than half of all luxury home sellers in 2021 and 2022 will be Covid HENRYs. A third of Covid HENRYs work remotely, and nearly half want to travel globally and have more unique experiences. Forty-one percent of Covid HENRY luxury home sellers also own a second home, indicating a desire to sell and actively pursue travel and experiences. As a whole, Covid HENRYs are divided more evenly in their desire to live in cities (49 percent) or suburbs (43 percent). 

Early-retired Gen Xers

More than one in five of all Early-retired Gen Xers plan to sell a home in 2021 or 2022, accounting for 27 percent of all luxury home sellers. Historically, retirees plan to downsize their homes. However, today’s Early-retired Gen Xers are facing atypical situations. Thirty-nine percent have adult children, parents, or other extended family living with them in their homes. In fact, 58 percent of Early-retired Gen X luxury home sellers have had family move in since the pandemic, driving them to list their current homes in favor of larger ones with more bedrooms. More than half of Early-retired Gen X luxury home sellers are looking for their next home in rural areas. 

Across the board, luxury home sellers in 2021 and 2022 are focused primarily on family and space. They are making housing decisions based on proximity to family members and ensuring that they have enough space to live comfortably. Sixty-seven percent of luxury home sellers who currently live in an urban market would like to remain in a city, indicating that urbanites are not fleeing their cities as has been otherwise reported. Instead, the pandemic has shifted luxury home sellers’ priorities to homes that allow them to live where, and with whom, they want. 

To access the full report, click here.

❄️ Engel & Völkers, around the world 🌎

❄️ Whether you gravitate toward the ski slopes or sand dunes, this winter is brimming with opportunities to find your perfect haven. Through the global network of Engel & Völkers, I can help you find the perfect property for you to live and play, whether it be a new primary residence in your local neighborhood or a secondary residence anywhere around the world.

Five Traditional and Timeless Equestrian Estates

For passionate equestrians, a traditional and timeless equine estate is essential. Peaceful properties allow riders to embrace the freedom of horse riding and achieve ultimate tranquility without leaving home. These homeowners seek to make as graceful a connection with their houses as they have with their horses. The homes are enhanced by charming equestrian features, gourmet country kitchens, trap shoot facilities, double-stall barns, and beautiful riding arenas. Homeowners find freedom in the endless outdoor activities, perfect picnic spots, and horseback rides across stunning meadows. 

Whether nestled in a quiet section of Wellington, Florida or located on a gorgeous ranch in Missoula, Montana, these five properties offer everything a horse enthusiast could need.

Wellington, Florida

Located in the heart of Palm Beach Point East, this rustic, European-inspired equestrian facility offers extravagant living quarters equipped with five and a half acres of charming grounds. Both luxurious and functional, this facility features two bedrooms for staff, a rider’s lounge, a traditional office space, marblewood floors, central ceiling fans, and two spacious parking garages.

It boasts grandeur and magnificence across its seven bedrooms, six full bathrooms, antiquated dining and living spaces, and a multipurpose media room. The barn consists of two 12-stall wings, each with its own feed and tack rooms. The lavish and majestic equestrian home is set on a tranquil and private plot, only a short ride to the Winter Equestrian Festival. The farm includes a 140 foot by 205-foot Equestrian Services International arena, RV hookups, and generous parking.

Listed by Travis Laas of Engel & Völkers Wellington.

Lakeside, Montana

Overlooking the pristine Flathead Lake in Lakeside, Montana, Amen Ranch offers more than 20 acres of picture-perfect land. Boasting 13 bedrooms and nine bathrooms, the ranch provides an abundance of space for large groups and gatherings. Whether relaxing in the peace and quiet, fishing on the pond, enjoying the trapshooting facility, or spending a day on horseback, Amen Ranch offers endless outdoor activities, making it the ideal place to escape everyday life.

A 4,400 square foot log home serves as the main house, featuring four bedrooms and three and a half bathrooms. With its gourmet country kitchen, stainless steel appliances, granite countertops, and commercial range, this remarkable jewel is perfect for culinary masterminds. In addition to its show-stopping views, the estate offers two wood-burning stone fireplaces and accommodates up to 18 guests, seating 40 people. The horse facility features seven stalls and a tack room, with access to a fully fenced pasture. Additionally, the barn features an apartment with three bedrooms, a three-quarter bathroom, a kitchen, a dining room, and a large living room. Extra features include a security system, a gas station, two large wells, high-speed internet, a backup generator, and a commercial-quality gym.

Listed by Brittney Osbourne and Dawn Maddux of Engel & Völkers Western Frontier – Missoula.

Washoe Valley, Nevada

Nestled at the base of the Sierra Nevada Mountains in Steen Ranch, this nautical farmhouse is a breathtaking and rare opportunity for equestrians. Whimsical views of apex mountains, crystalline lakes, and glowing, golden valleys spread across the over 25-acre estate. It is home to a 16,000 square foot residence and two guest cottages. The estate’s elegant design includes exquisite, hand-hewn wood, 11 double-stall barns, a traditional yurt, eco-friendly greenhouses, and a riding arena with ample space for gallop practice. High ceilings and two fireplaces enhance the home’s relaxing ambiance.

Listed by Jean Merkelbach of Engel & Völkers Lake Tahoe.

Carbondale, Colorado

This secluded and private sanctuary located at The Flying Dog Ranch spans 224 acres of the Roaring Fork Valley below Mt. Sopris. As the estate is only three and a half miles from Carbondale and 29 miles from Aspen, equestrians can pursue skiing adventures on top of riding. The legacy ranch boasts 180-degree panoramic views and a rich history of protecting water rights and wildlife, making it the perfect haven for a horse and cattle ranch.

Additional features include three homes, an event center, an intrinsic art studio, a fitness center, environmentally-friendly greenhouses, a tree nursery, and a contemporary barn for limitless recreational activities. The property features eight bathrooms, a two-car garage, four natural gas fireplaces, and energy-efficient solar heating. Overlooking the Crystal River frontage, this sustainable property is also home to two rental spaces, making it a truly exceptional opportunity. 

Listed by Lydia McIntyre of Engel & Völkers Aspen.

Clarendon, Vermont

Constructed in the 18th Century, this colonial farmhouse boasts over 23 acres of land, providing more than 5,000 square feet of exquisite pasture. This sweet homestead offers a dramatic tile entry which opens to a large sunroom, a full wet bar, and a gourmet kitchen with three ovens, a Sub-Zero refrigerator, and three walk-in pantries.  A cozy living room, intimate dining room, classic yet relaxing living room, homely office, half bath/laundry room, and primary bedroom suite—featuring two walk-in closets, a large soaking tub, and double sinks—round out the first floor. 

The second level includes another owner’s suite with a private deck, three more generous bedrooms, a laundry room, and a must-see wine cellar. Exterior features include a large bluestone patio with a brick wood-fired pizza oven, a large heated barn, a storage shed, a 30 foot by 80-foot party pavilion with a bar, a walk-in cooler, and a cooking area. With two Bocce Ball courts and a two-bedroom, one-bathroom guest house, this property is a steal at $1,285,000 USD.

Listed by Gail Beardmore of Engel & Völkers Okemo.

Five Luxurious Mountain Estates Fit for Your Next Ski Adventure

November 30, 2021

As the days grow colder, homeowners across the Americas are preparing for adventures on the slopes and cozy nights spent fireside at home. With gorgeous mountain views and stunning stone fireplaces, ski estates provide the perfect escape for families and friends to create everlasting memories while enjoying all the outdoor adventures that nature has to offer.

Whether it’s watching the snow magically fall from the refuge of a mountain retreat, hitting the trails on picturesque alpine slopes or enjoying a peaceful ski lodge oasis there is nothing better than world-class shopping and dining, an international social scene and laid-back culture of a ski-town experience. Here are just a few exquisite ski homes currently listed by Engel & Völkers.

Whistler, British Columbia

Just minutes from Whistler Village, this marvelous mountain masterpiece offers 6,345 square feet of interior living space on an enviable slope-side location atop Sunridge Plateau. Exceptionally designed, and built by award-winning architects, Munster & Sons, this ski estate features a magnificent 452-year-old, 49-foot-high log from Vancouver Island’s Gold River.

With six and a half spacious bedrooms, an exquisite home office with a built-in fireplace, cozy cupola, and antique wine cellar it’s the ideal location to enjoy privacy, peace and luxury. Whether you’re sipping morning coffee enjoying the view, relaxing in the 30-foot pool or unwinding in the home spa after a thrilling day on the slopes this mountainside estate has everything to offer.

Listed by Maggi Thornill of Engel & Völkers Whistler.

Park City, Utah

This elegant, private mountain masterpiece will impress all generations of ski enthusiasts. Designed by renowned architect Fred Babcock, the home spreads across 16 breathtaking acres of crystal-clear lakes and crisp mountain air. Less than 10 minutes from Deer Valley, Park City Mountain Resorts, and Park City’s Historic Main Street, homeowners can easily take advantage of quality skiing, exclusive shopping, and fine dining. 

The property was built for large gatherings, featuring a gourmet kitchen, multiple entertainment areas, executive office, wine cellar, six luxurious suites, wood and gas fireplaces and multi-level outdoor living spaces. Embark on endless recreational activities like hiking and skiing, enjoy relaxing afternoons in the sauna, and create lifelong memories with friends and family.

Listed by Paul Benson of Engel & Völkers Park City.

Mont-Tremblant, Québec

This superb residence is perched on three mountainside acres of the internationally renowned ski resort Mont-Tremblant, Canada. The architectural masterpiece overlooks a private aquatic pavilion and a spectacular waterfall. On top of privileged access to Lac-Tremblant, this luxurious ski estate features three kitchens, six bedrooms—four including walk-in closets—five cozy stone fireplaces, a large gymnasium, sauna and billiards room. 

Gorgeous cathedral ceilings, carefully crafted woodwork, and majestic lighting adorn the home’s interior and exterior. The aquatic pavilion offers a separate kitchen, living and dining room, barbecue, fireplace, large pantry and bathroom. With sizable outdoor space and a guest apartment boasting its’ own kitchen, living room, two bedrooms and bathrooms, this home is ideal for welcoming and entertaining both friends and guests.

Listed by Sean Hummell of Engel & Völkers Tremblant.

Vail, Colorado

Vail, Colorado is home to decades of everlasting, family memories and there is no better place to gather than Vail Village’s iconic Forest Road, where sophisticated living meets timeless tradition. Nestled within breathtaking aspen trees, this estate offers the perfect blend of convenience and privacy, magnificent mountain views and an ideal location close to the village.

Enjoy multiple outdoor decks, heated flagstone patios, and extensive landscaping which integrate seamlessly into the interior’s kitchen, dining and great rooms. Gorgeous natural light radiates through the common areas, making the family room ideal for relaxing after a long day of skiing. The home also features upgraded lighting, flooring, paint, audio/video functionality, heated two-car garage, fitness room, temperature-controlled wine room, elevator and custom landscaping.

Listed by Gary Pesso and Steve Stavisky of Engel & Völkers Vail.

Whistler, British Columbia

Do you dream of skiing home to a private mountain oasis after a day spent on Blackcomb Mountain’s slopes? If so, look no further than this stunning property tucked away in a private setting near Lost Lake and Whistler Village.

The home spreads across four levels, offering six bedrooms, five and a half bathrooms, and a TV sitting room on its lower level. After an action-packed day on the slopes, sit back and relax in a private outdoor hot tub or cozy up around the gas fire pit. With adventures to be had around every corner—whether on the mountain, around Lost Lake, or biking the Valley Trail—this private and peaceful estate is a must-see.

Listed by Maggi Thornill of Engel & Völkers Whistler.

Engel & Völkers Expands into Knoxville, TN


We have expanded! Our latest expansion into Knoxville, TN, marks an entrance into the beautiful mountain and lake country of East Tennessee. The newly established “Engel & Völkers Knoxville” will service homebuyers and sellers, specializing in lakefront properties in Knoxville and the surrounding areas. Lara Conrad will now be offering exceptional service in East Tennessee in addition to the Colorado market.

The global luxury real estate brand’s latest expansion in the Southeast strengthens its presence in a region that is experiencing an influx of new residents and inbound moves “Tennessee ranks among the top five states for inbound moves in the U.S., and Knoxville is a premier market that we’re thrilled to now be part of,” said Anthony Hitt, president and CEO, Engel & Völkers Americas.The new Engel & Völkers Knoxville shop is located at the Pinnacle at Turkey Creek in West Knoxville and will service homebuyers and sellers drawn to the area for its magnificent lakefront and mountain properties, beautiful terrain, low property taxes, proximity to the Smoky Mountain National Park and accessibility to Nashville, Atlanta, Asheville and Gatlinburg. Knoxville is also home to the University of Tennessee and attracts a high number of professionals and engineers. The city also boasts a vibrant microbrewery and restaurant scene, and a full four-season year in a temperate locale. Residents have their pick of housing inventory ranging from rustic cabins to lakefront mansions, urban condos to historic homes, as well as starter and median-priced homes to multi-family hunting properties. Lara Conrad will now be focusing on the Knoxville area market and specializing in Tellico Village and surrounding communities.For more information, visit knoxville.evrealestate.com.Learn more about the shop: https://bit.ly/39w1lbT


My Colorado Community 
I am excited to announce my partnership with one of Colorados top ranking Realtors,
Dan Pearson.
Dan will be my “feet on the ground” so to speak while I am in Tennessee. We are both always available for you and your loved ones, so please reach out at anytime.

East Tennessee
$1,200,000
Boat enthusiasts! Serene lake living at its best! Year round deep water cove. Gorgeous views of wildlife and nature. Well built custom home primary bedroom on the main level, two additional bedrooms and office on lower level. 1000 gallon septic tank installed. Stone and custom wood working throughout. Property features soaring wood ceilings, open fully equipped kitchen, main level owners suite, cedar lined walk in closet in owners suite, dining and expansive great room. Two additional bedrooms, office and living area downstairs. Huge double deck for relaxing evenings overlooking the mountains and lake. Many updates throughout with new kitchen appliances, hardwood flooring, tile, and many more.Enjoy brunch on your private gazebo, swim from well designed steps that bring you directly into the lake, or launch your boat and jet skis from the custom dock and boat lift, complete with electricity and water. Upgrades and Improvements: Installed ~400′ fencing on side yard New 4 x 80′ stone walking path from gated entrance to lower level New backsplash in Kitchen Added a stone hearth and wood burning stove Replaced carpeting upstairs with hardwood flooring Replaced carpeting downstairs with large tile Remodeled kitchen adding an extra oven and all new appliances Remodeled limited storage area to an open pantry Added additional landscaping New painting throughout interior and exterior. ID#: 1158112

Is a second home a sensible investment?

Many people dream of a second home abroad. Here you can find out why a second home need not remain a dream, but can be a worthwhile investment:

Many buyers see the purchase of a second home as an immediate source of income in addition to a long-term capital investment. On the one hand, the rental income can be used for refinancing the holiday home as well as for additional income. In addition to the immediate income, personal retirement provision is also one of the most important motivations for buying another property: A holiday home as a capital investment thus represents an additional safeguard for the future in addition to a statutory pension. 

All in all, holiday properties are much more versatile than one might initially expect.

Tellico Village, TN

6 Things to Know About the Housing Market’s Big Shift

As housing continues to shift slightly in buyers’ favor, there are six things buyers and sellers need to know about the market. Anthony Hitt, CEO of Engel & Völkers Americas, discusses an influx of buyers, particularly from Europe, returning as international travel begins to recover. Read more here.

My Big News??

I’m expanding my business! Stay tuned for more exciting details! 

Engel & Völkers launches Live Your Luxury campaign

Engel & Völkers recently launched its Live Your Luxury campaign, a multi-channel initiative that includes print, digital, and social media marketing assets. This campaign capture some of the intangible qualities that make a home, “home”. Read more here.

Engel & Völkers attracts media attention locally, across the Americas, and around the globe through our award-winning public relations and marketing strategies. We position our network members, our leaders, and our exceptional listings in front of millions of consumers every month. Take a look at who’s talking about Engel & Völkers.

AN ODE TO LIFE IN THE COUNTRYSIDE

Whether it’s the beauty of nature or the allure of growing your own organic produce, there’s an enduring appeal to life in the countryside. But it’s not just a romantic pipe dream, the reality is packed with tangible benefits for home buyers from all walks of life – both in terms of lifestyle and investment returns.

Farm in Tuscany at dawn

Space

It doesn’t matter if you’re buying in the UK, USA, France or anywhere in the world, the price per square metre is likely to be lower in the countryside than the city. Even better, properties in rural areas tend to be larger on average. This means that you have a much better chance of finding a luxuriously large property with potential for development both indoors and out.

Air quality

The damage diesel fumes are doing to urban air quality is a global concern, as organisations and individuals attempt to get to grips with the growing health crisis in polluted citiesWhile rural communities aren’t immune to these problems, particularly if they’re close to out-of-town industrial or farming developments, life in the countryside can provide a breath of fresh air if you choose the right spot.

Fresh produce

Life in the countryside is more than just the location – it’s the lifestyle too. The growth in green, healthy eating trends like organic farming, local sourcing and foraging have made living in the countryside an ever more appealing prospect. So when you’re investing in a rural property, remember that verdant forests and ethical farmers are the equivalents to supermarkets and restaurants for would-be rural buyers.

Price appreciation

After years of rising prices in urban centres, these benefits to life in the countryside are once again starting to command a premium in the property market. And with big differences in affordability in different rural counties, there are plenty of opportunities to identify an area with potential.

Alternative investment options

Cities may boast investments that are packaged, branded and targeted at people from all walks of life, but the real estate market in the countryside has the potential for a much more personal approach. With plenty of scope to buy a plot of land and develop your own dream home (or investment property), and with incentives available for buying historic properties or joining rural communitiesyou can find a unique path that might be much more lucrative than attempting the same prospect in the city.

Lucrative sidelines

You can use your extra space to host guests who are keen to explore the local area, and even partner up with some of those local foraging and farming experts to offer activities. Alternatively, invest in a mixed use property and harness (or sublet) barns or outhouses for business, or grow fresh organic herbs in your ample acreage.

The business and lifestyle opportunities in the countryside are vast. If you need help identifying the ideal locale, our worldwide network of Engel & Völkers realtors are perfectly equipped to help. And in the meantime, our regularly updated property insights can give you the background information you need to develop your dreams.

Escape the city – the dream of country life

Engel & Völkers AG 
The corona pandemic has increasingly made the home the centre of life and primary hangout for the whole family. As more time is spent at home by all members of the household, there is a growing desire for more space and opportunities for retreat. Accordingly, more and more people wish to live in the countryside. Apart from the prime locations in city centres, suburbs and rural regions surrounding the large metropolises are also currently experiencing significant growth in demand. 

And rightly so, because country life has a lot to offer – both in terms of quality of life and financially. Engel & Völkers expects the suburbanization trend to continue and rural regions in the catchment area of major cities to be revitalised in the long term.

Enjoy browsing our property highlights, all of which are distinguished by their secluded, tranquil locations.

Property highlights

Italy, Sardinia, Porto Cervo countryside

Seclusion and relaxation in Costa Smeralda

  Seclusion and relaxation in Costa Smeralda House, Italy, Sardinia, Porto Cervo countryside    This newly built house offers complete tranquillity and privacy thanks to its unique location in the hills of Sardinia. It is situated out in the countryside, yet only a few kilometres from the most beautiful beaches of the Costa Smeralda and vibrant Porto Cervo. Its interior is characterized by an appealing mix of modern and traditional elements.

The house is spread over three floors: The ground floor features three double bedrooms, each with its own bathroom, as well as an open-plan living area that blends harmoniously with the fully equipped American kitchen and offers direct access to the terrace and pool. The upper floor is exclusively reserved for the master bedroom with en suite bathroom and private terrace. Two extra bedrooms – ideal for domestic staff – a living area with kitchen and a practical laundry room are located on the lower floor. The outdoor area features a beautiful pool with sun terrace, as well as various lounge areas from which to enjoy the views of the rural surroundings. The house also has air conditioning, Wi-Fi and three covered parking spaces.  E&V ID W-029IJT

View exposé 

Housing Market Forecast 2021: Will It Crash or Boom?

So, you’re hoping to buy or sell a home in 2021 and want to know how the housing market forecast looks—especially after such an unpredictable year. Well, keep in mind that no one can predict what’s going to happen with 100% accuracy. But we can check out what real estate trends are happening and make some guesses about the future from there. (Hint: It’s still looking strong!)

Remember, housing market predictions can only give you an idea of what to expect if you buy or sell a house this year. But never let them control your housing decisions—only your personal situation and finances should do that.

With that said, let’s take a closer look at how the market is doing.

Your Housing Market Forecast for 2021

The housing market in 2021 is continuing to explode like fireworks. Experts are seeing a post-pandemic rebound—we’re talking steady mortgage rates, job recoveries, and the law of supply and demand all working together to make home sales go kaboom!1

That’s right, forget the slow start to 2020 where all the unknowns of the pandemic outbreak had home buyers and sellers feeling a bit shy about pulling the trigger. Now there’s high demand with super low inventory, and pent-up buyers are scratching and clawing to enter the market.

Toward the end of 2020, real estate gurus projected that low mortgage rates and the rise of remote workers with flexible schedules would keep home sales booming. Comparing those predictions with the numbers from the first quarter of 2021, it looks like reality is beating out expectations. Take a look:

Housing Market Predictions2021
Existing home salesUp 9%
Newly built home salesUp 21%
Home pricesUp 8%
Mortgage rates (30-year fixed)At 3%2,3
Housing Market DataJan – Mar 2021
Existing home salesUp 12% YOY
Newly built home salesUp 37% YOY
Home pricesUp 16% YOY
Mortgage rates (30-year fixed)At 3%4,5,

Okay, so if you’re looking to buy a house right now, those first-quarter numbers may seem a bit scary—especially with the national median home price soaring in a record high increase since 1989!7 Putting that into dollar signs, the average home cost rose to $319,200. That’s nearly a $45,000 jump in price compared to the first quarter of 2020!

But, buyers, take a deep breath. Don’t let the data squash your dream of buying a home just yet! Remember that these numbers are only based on the first three months of 2021. Plus, those percentage changes are compared to what was happening in the beginning of 2020, and we all know there was some weird stuff going on back then. So it’s not totally crazy to see big changes.

Also, keep in mind, these numbers will probably change here and there as experts crunch new data. But the bottom line will mostly stay the same: Home sales and prices are likely to stay higher in 2021 compared to last year.

Plenty of Home Buyers Continue to Enter the Market

Real estate agents across the country were asked to describe their market based on how many buyers were looking and how many sellers were selling. Check out the map to see how hot the buyer traffic looks in your neck of the woods:

Realtors say that sales went from hot in February 2021 to even hotter in March. Each home that sold had an average of more than four offers!8 And it looks like buyer traffic is remaining strong throughout most of the country, which is a great sign for sellers.

Not Enough Homes Will Be Listed for Sale

On the other hand, the number of homes actively listed for sale was down 52% in March 2021 compared to last year.9 The next map shows how the majority of markets are looking somewhat slow when it comes to seller traffic—so buyers will have to work harder to find their dream home.

How Fast Are Homes Flying off the Market in 2021?

Before the start of 2021, existing homes were typically on the market for 21 days—meaning houses were plucked off the market two weeks faster than the typical 38 days from a year ago.10 And we’re now seeing homes sell even faster than that, typically selling within 18 days on the market.11 That’s another new record!

Now, this is great news for sellers who are itching to get their homes sold fast. But buyers need to stay focused! You don’t want to drag your feet once you find the best home because it’ll likely be gone if you wait too long to commit.

Of course, every market is a little different. Here’s a state-by-state breakdown so you can see about how many days existing homes stayed on the market in your area:

Will There Be a Lot of Foreclosures in 2021?

Early projections showed that 225,000 to 500,000 homeowners across the country might face foreclosure (eviction for missing mortgage payments) in 2021.12

Though the government put a temporary ban on foreclosures and evictions to provide housing relief during the pandemic, we’re starting to see foreclosures tick back up—but only on vacant and abandoned properties.13

There were 33,699 U.S. properties that had foreclosure filings in the first quarter of 2021—that’s a 9% increase from the last quarter of 2020, but it’s still down 78% compared to the same period last year.14

Why are experts predicting an increase in foreclosures? Well, those projections are mostly based on job losses connected to the pandemic. After all, the government ban on foreclosures won’t last forever. And imagine how hard it’d be for a homeowner to keep up with mortgage payments after losing a stable job and income. If that’s you, hang in there! There’s more you can do to avoid foreclosure, like tightening up your monthly budget and finding multiple jobs.

On the other hand, what do more foreclosures mean for home buyers? You might find a sweet discount! But keep in mind, buying a foreclosed home could come with its own set of potential issues. So make sure you do your homework on the house and know what you’re getting yourself into before you buy.

Is the Housing Market Going to Crash in 2021? What About 2022?

It’s pretty unlikely that the housing market will crash in the next two years. Remember, home prices have already seen a 16.2% increase in 2021, more than doubling original predictions.15,16 That’s a good thing for the economy!

Back in 2020, experts projected that home prices would keep increasing in 2022, growing at a slightly slower rate of 5.5%.17 But after seeing how far off predictions were for 2021. . . well, who knows what’s going to happen.

So, when is the market expected to crash? Here’s the deal. As long as new buyers continue to enter the market and there aren’t enough homes for sale to meet demand, home sales and prices will continue going up, and the market should stay healthy.

On the other hand, if the number of houses for sale was crazy high and the number of buyers willing to buy them suddenly plummeted, home prices would get slashed—and that’s when a crash would be something to worry about.

What Does This Mean for Home Buyers in 2021?

Okay, it looks like you’ll need to bring your A game if you want to buy the home of your dreams this year. With more buyers than sellers, you’ll probably be up against some heavy competition, and you might have to gear up for a bidding war. But don’t worry—there’s a bright side for buyers too.

If you’re getting a mortgage, you might still be able to get a low interest rate in 2021. The annual average interest rate for a 15-year, fixed-rate mortgage in 2020 was only 2.61%—the lowest it’s been since Freddie Mac started reporting nearly 30 years ago!18

The way things are looking, rates seem like they’ll stay pretty low through 2021. That means you’ll probably still have a good chance of locking in a lower-than-average one. A low rate means a lower monthly payment and less of your money going toward interest over the life of the loan. Woo-hoo!

Another bright side: Many experts anticipate housing inventory will climb by 43% in the second half of 2021, which means you’ll be fighting less people for your dream home—if you can hold out for it.19

What Does This Mean for Home Sellers in 2021?

Sellers out there can feel pretty good about 2021, but if that’s you, you might want to put your house on the market sooner rather than later while inventory is still low. There are plenty of buyers out there, but experts are predicting more people will sell within the next year, meaning you’ll have more competition.20

If you work with an experienced agent, you’ll be able to set the best home price and find the right buyer. With an expert by your side, you should have no problem selling your house at a great price this year.

Housing Market Predictions for 2022

Right now, the housing market is red hot, with many homes selling above value simply because there are tons of buyers and not enough homes for sale. Is that going to continue through 2022?

Well, of course, no one can know for sure. In a Zillow research study, more than 69% of real estate gurus surveyed said they expected more houses to go up for sale in the second half of 2021 or the first half of 2022.21 And if more homes go up for sale, home prices should cool down too. Experts are predicting annual home value growth to slow to 4.5% in 2022 and continue a downward trend through 2025.22

How to Buy or Sell With Confidence in Any Housing Market

The housing market isn’t known for being simple to predict. That’s why it pays to have a trusted professional in your corner. To connect with an agent who has weathered the storms of real estate, try our Endorsed Local Providers (ELP) program. We only recommend top-notch agents who help you crush your housing goals—no matter what the market is doing.

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