This past year presented numerous challenges to the real estate industry. As we look ahead toward 2021, preparing for emerging trends can help real estate professionals plan for the new year and take advantage of market developments.

The Return of Seasonality

With unprecedented disruption this past year, traditional seasonality in the housing market became virtually obsolete. Entering into 2021 buyers will likely see a return of the traditional patterns in home-buying with higher sales rates in the spring and summer months and a slow down in the latter portion of the year.

Home Sales and Prices

While the market may still seem sluggish, the truth is that sales are steadily picking up. More homes on the market and increasing demand make for more sales, driving the market toward recovery. Similarly, home prices are continuing to rise due to growing demand. This creates a profitable seller’s market, which will continue well into 2021.

Millennial Movers

It’s common to believe that most Millennials opt to rent instead of buying due to the financial strain of college loan debt. However, that standard is beginning to shift. More Millennials are looking to become homeowners, and real estate industry professionals will need to account for this growing demographic when making sales. This shift comes now that older Millennials expand their families, have children, and look to settle down.

Expecting the Unexpected

As 2020 has proven, nothing is certain. While the trends mentioned above are gaining speed and have a high chance of continuing well into 2021, the ongoing pandemic, record-high levels of unemployment, and the CARES Act’s expiration could contribute to additional disruption within the real estate industry. Real estate professionals should be diligent and proactive when preparing for 2021 as they will now understand that anything is possible and the future is remarkably uncertain.

With these trends and developments in mind, real estate professionals should effectively plan for 2021. Naturally, keeping an eye on the markets and staying connected to other relevant professionals will also be a useful approach to the new year.