2021 real estate steering factors
INVENTORY - THE LIFEBLOOD OF THE MARKET
As we shared in the opening pages of this report , the supply of new listings coming on the market in the first 4 months of 2020 sufficiently fed the level of demand . But by the end of May , and from that point forward , pending sales outpaced new listings . Thus , resulting in a shortage of available inventory in the marketplace . 2021 is starting out with an insufficient supply of inventory amid a growing supply of demand . While this creates a strong seller ’ s market , it also creates a challenge for those looking to purchase , reducing their options , and possibly stagnating or altering buyer performance for our market . Some sellers are hesitant to sell due to the uncertainty of the virus , economy , etc ., while others have renewed their own interest in calling the Lowcountry home , resulting in an increased level of property retention and a corresponding decreased level of property turnover . At the same time , rising property values , downsizing / simplifying , and general changes in housing needs are certain to fuel a much-needed level of new listings in the first two quarters of 2021 . Therefore , inventory is shaping up to be the key steering factor in how the 2021 real estate market unfolds .
TECHNOLOGY & INNOVATION A NEW SALES PROCESS
As people safely distanced and separated in 2020 , the technologies that helped bring us together virtually ( Zoom , Facetime , etc .) took root in the real estate industry . These were complemented by electronic signing software , online viewing platforms , transaction management systems , and numerous mobile apps that have created a new sales process in real estate . Clients are often surprised and impressed with how technologically-assisted real estate has become ,
BUYER DEMAND - A SHIFTING FOCUS
Assisting buyers from 28 different states in 2020 alone , we ’ ve come to know that the Hilton Head / Bluffton area is increasingly on the radar for relocation . Due to its natural beauty , abundant amenities , year-round climate , deep culture , compelling location , and relative value , the Lowcountry has much to offer . There are few places as compelling to retire , telecommute , learn-from-home , raise a family , etc . as the South Carolina Lowcountry .
10 | Collins Group Realty
The Net Migration by State graphic ( below ) demonstrates that pandemic-driven relocation has placed South Carolina among the highest states for migration gains . We are seeing many buyers bypassing the interim purchase of a second home as they accelerate their plans to make the Lowcountry their primary residence . We expect this trend of primary residential relocation to continue strongly in 2021 .