4 Trends Happening in Today's Real Estate Market

The real estate market heading out of 2021 is one that provides not only opportunities for both buyers and sellers, but also holds promise for 2022 and beyond. Covid-19 shook things up, and for a while, no one was truly sure where things were headed.

Thankfully, real estate experts quickly took action to adapt to changing circumstances and assist buyers and sellers with finding great deals. Going forward, here are four trends to key an eye on if you want to see success in the real estate market:

1. Sellers Have an Advantage During Low Inventory Periods

Inventory is one of the most vital pieces of the puzzle in real estate. Low inventory means sellers have a slight advantage, but this advantage is often fleeting. Early in 2021, inventory was higher than it has been in the latter part of the year.

Homes for sale in Dallas, TX, and in other parts of the country have slowed in pace when coming to market, but this doesn’t mean that the trend will continue. As a result, if you’re a seller, now would be a good time to partner with a real estate professional to assess your options and start getting great offers.

2. Buyer Competition Will Remain Fierce

For buyers, the current outlook is one full of possibilities, but be prepared to place competitive bids. As stated above, low inventory means more competition. If you wait to buy, you may have an easier time when inventory is higher, but waiting or forgoing the bidding process could mean missing out on your dream home.

Once again, this is where working with a local real estate professional can become vital to success. Your real estate partner will not only know your local market, but they can also help you craft your bid to make it compelling and competitive to stand out and get you the keys to your new home.

3. Property Appreciation Goes Up as Bids Go Up

With all of the competition taking place to buy homes in a low-inventory market, home values are appreciating with each passing month. In fact, some estimates point out that home values have appreciated as much as 15% year-over-year in May of 2021.

Even if you’re competing in a market that has low inventory, the benefit is that winning the bid could become a big investment for the future. As values continue to appreciate, you may be able to sell the property at a higher return when and if you decide it’s time to move in the future.

4. Equity Builds Alongside Value

When you pay a mortgage each month, you’re building equity in your home; however, that’s not the only way that equity is earned. Because of the appreciation in home values, equity is building as well, providing homeowners with a potential source of fast cash to tap into for things like home improvements, paying off high-interest debt, and more.

What’s important to remember is that equity built through home value appreciation can shift if home values go down. A real estate professional can evaluate your specific home, area, and situation to help you make the best decision for your particular needs.