Agents Report Demand Still Strong, But Slowing

While 95% of agents agree it’s still a seller’s market, buyers may get some relief soon.

According to HomeLight’s Top Agent Insights for End of Year 2021, while inventory is still lower than most agents expected, 62% of agents said that bidding wars are on the decline. Additionally, 44% of agents said home prices are remaining steady, while 53% said they are on the rise. Comparatively, in the last quarter, 95% of agents said prices were on the rise, and only 4% said they were steady. The majority (59%) of agents think home prices will remain steady over the next six months into 2022.

More than 90% of agents said buyer demand is still strong thanks to low interest rates, but as they are slowly rising again, that confidence is dipping slightly, down 2% from the previous quarter. Three-quarters of agents said that while there are still multiple offers on homes, there are not as many, and 57% said while home prices are rising, the pace has slowed down. And 53% said inventory is slowly coming back, while 49% said price reductions are becoming more common.

Interestingly, the COVID-19 pandemic has fueled golfing as a hobby, leading homes near golf courses to see an uptick in value. The report found that the value of a home inside of a golf community has increased 48% from $16,174 to $24,002 since March 2020. The Northeast, in particular, saw the biggest jump in value, rising 57%.

Another trend made popular thanks to the pandemic is outdoor fireplace. Seventy-one percent of agents said it adds the most value, an increase of 72%, from $3,337 to $5,753. Nearly half of agents agreed that gas-burning outdoor fireplaces add the most value, followed by wood-burning, said 44%.