A buyer’s market means there are more homes available for sale than there are interested home buyers. When this happens, home shoppers have more negotiating power and time to choose – since sellers are less likely to have more than one offer to pick from. This was the case after the housing crash and financial crisis, when the market was flooded with homes but had few buyers, outside of real-estate investors looking to capitalize. So what should we expect from 2021? Well, most likely, not a buyer’s market. The number of homes for sale fell significantly last year and remains low. Conversely, home buyer demand is elevated and has been for a while. That means, more buyers than homes, which leads to competition and higher prices. But while home buyers aren’t likely to find a buyer’s market, they will find conditions softening from last year. With mortgage rates still at record lows and new-home construction improving, experts expect home-price increases to moderate and inventory to begin its recovery. In other words, the 2021 housing market won’t be a buyer’s market, but it should be better than last year. (source)
