If you’re planning to buy or sell a home in 2021, it’s best to do a bit of research first. With so many changes in the housing market over the years (especially during the pandemic), things have been highly unpredictable. Just keep in mind that no one can predict with 100% certainty about what might happen in the future.

In this blog post, we’ll discuss the latest trends in real estate increases over the past year and tips on how you can help increase your home’s value for when you want to make that landmark sale.

Housing Market Increases 2020 to 2021

If you’re worried that the housing market will crash this year, or anytime soon, there’s nothing to fear. In just the first half of 2021, home prices have already reflected a 16.2% increase. This is more than double the original predictions a year before. In 2020, experts estimated that home prices should grow, but at a slower rate of 5.5%. Seeing how much these predictions were off during the year, who knows what might happen in the next.

When is the housing market expected to crash? The short answer is, as long as there’s a shortage of homes for sale — meaning, there aren’t enough to meet the demands of new buyers, home prices and sales will continue to go up. This should keep the market healthy and out of trouble. On the other hand, however, should the number of houses in the market suddenly become abundant with no one to buy them, then home prices would get slashed. This is when a crash is a threat. 

Home Values Are Estimated To Continue Growing

The high demand and the low supply of homes across the country will continue to drive the value of homes well into the next half of 2021. From November 2020 to November 2021, home values were projected to rise by 10.3%, according to Zillow. Despite these numbers making it harder for potential buyers to make a purchase, there is a big benefit to it. While home values continue to increase, their resale value also rises, which is an essential aspect for anyone who currently owns a home. 

Why Construction of New Homes Isn’t Recommended

While new construction trends may turn out to be positive, the soaring demands may end up creating a bottleneck. Unfortunately, mortgage rates weren’t the only factors hitting a record low in 2020 — according to REALTOR.com, housing inventory was also at its lowest. As a result, there are a limited number of homes available to buyers, and as such, many are turning to constructing new houses.

There is also a problem when it comes to this option — as a result of shortages in materials, builders are likely to face bottlenecks. According to the National Association of Home Builders (NAHB), such shortages don’t just refer to building materials but also skilled labor. Furthermore, if you’re looking to build your new home (whether it’s a total renovation or a brand new construction), you’ll need a new construction loan.

Unfortunately, high demand for new constructions will drive an increase in the costs needed, which in turn, will affect how much you’ll need for a loan. This is why it’s best to do your research ahead of time and make sure that you have enough resources to take out a loan in the current market. If you already have a home and are looking to take advantage of the current housing market, then below are some of the best additions that you can make to increase your home’s value. 

Additions to Homes Increase Their Value

Thankfully, there are various things that you can do or add to your home in order to improve its value. From giving your home regular maintenance, changing a few aesthetic points, and creating a brand new living space outside your home, here are additions to your home which are guaranteed to make it sell for a higher price. 

Add a Deck, Covered Porch, or Pergola to the Backyard

One home renovation idea that returns a huge value is the addition of a deck. One reason for this is that decks can increase your living area's space, with fewer costs associated with building it per square foot. For example, a wooden deck in the Atlanta area that costs approximately $20,000 will return 106.7% of its value on average during resale. A composite deck that might cost $35,000 will come back to you with an average of 122% of its value.

Overall, a deck won’t just give you great ROI, but will also improve, expand, and revamp the whole look of your home. An outdoor living room will provide you and your potential buyer with a comfortable space that you can use as you like. Whether you create a fireplace, blend garden structures such as pergolas and arbors, or a simple area to gather for a meal under the stars, decks are a cost-effective and appealing solution to increase your home’s value. 

Roof Replacement

If you’re trying to sell your home as soon as possible, or a few years down the road, you’ll need to give your roof some love. Your roof’s condition is one of the first things that a potential homebuyer will see, and they will surely ask about it. Lucky for them, it’s an obvious feature that can’t be faked. Unlucky for you, you can’t hide the real extent of its damages if there are any. 

However, a roof that doesn’t need much work post-sale may allow you to increase your asking price. According to the National Association of REALTORS, replacing your roof will recover 107% of the cost upon resale, and a home with a brand new roof will bring in more value than a house of the same floor plan but with a 15-year-old roof. 

Tree Removal and Outdoor Maintenance

If having a beautiful and impressive landscape design is able to increase your home’s value, then a poor design can set it back by around 10%.

Some examples of poor design include: 

• Dying or dead trees
• Planting trees too close to the house 
• Planting trees too close to other trees, shrubbery, or fences

In these cases, it’s best to call for tree removal services, especially in the case of dead or dying trees, as these may present potential hazards to the whole neighborhood. It’s also best to consider the other designs around the neighborhood. While you don’t have to copy everything they’ve done, it’s also wise not to stray too far from them. 

The pandemic created an opportunity for homeowners to spend time investing in their homes by building additions, laying tile, adding covered porches, etc. This now means that more homes on the market are already have upgraded outdoor living spaces or interior accents. If you put your home on the market right now there is no doubt that you will get top dollar, but thats top dollar compared to what?

If you really want to maximize your homes value and cash out big in this market then you have to go custom and make an impression. Custom decks and porches that are made of composite materials are a magnet to potential home buyers. As they marvel in the beauty they will begin to imagine entertaining friends and neighbors, or picture themselves relaxing on a warm spring day, and then they will realize the biggest benefit... no maintenance.

Today's home buyer is aware that they will likely be in for a bidding war. Preparations are made ahead of time and pros and cons will be weighed. Will your home make the cut for the highest bid?