Millions more homebuyers could enter the housing market to contend for their dream homes this year than last, according to a recent survey by Zillow. In 2020 housing inventory was scarce and with this year’s construction permits up 14 percent, according to the U.S. Census Bureau, homebuilders will try to make up for a dwindling inventory amongst eager buyers.
As it stands, listings for available homes are about half of what they were last year, according to realtor.com. Unrelenting housing demand and an ever-shrinking inventory mean buyers can continue to expect bidding wars and rising prices in many states across the country.
These market conditions may continue to spell good news for house flippers.
Below, we’ve summarized key points from Zillow’s latest assessment of the housing market based on results from its survey.
More than 10 percent of Americans moved in the past 12 months—some by choice, others by necessity. Millions more households could enter the housing market this year as the result of an increasing number of coronavirus inoculations, and an economic recovery that’s gaining steam.
There was an upswing in the number of Americans who moved to the South (a region that Paces services) over the past 12 months—especially to Sun Belt cities, like Charlotte, N.C., Austin, and Phoenix. In direct contrast, home inventory rose the highest in four major markets—New York, Chicago, Los Angeles, and San Francisco.
Among the surveyed participants about 75 percent said they changed residences for positive reasons, like living in a desired part of the country, or being closer to family and friends. Their movement was made possible, in large part, by work-from-home business models adopted by many companies due to the pandemic. Many workers were able to live where they wanted as long as they had an internet connection.