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As of January 21, 2021, realtor.com's December rental report reveals significant disparities in rental trends across the U.S. Major cities like San Francisco and Manhattan are experiencing steep declines in rents, with studio rents dropping by 33.8% and 21.0% respectively. In contrast, suburban areas like Sacramento see rental increases, with studios rising 20.3%. Nationally, studio rents decreased by 0.7%, while one- and two-bedroom units rose by 0.8% and 2.6%. The report underscores the local nature of real estate, particularly in the rental market.

Realtor.com has partnered with Asteroom and CloudPano to enhance its 3D tour offerings for home buyers. This addition aims to meet growing demand for virtual real estate experiences, especially post-pandemic. Home shoppers can now access interactive 360-degree views, facilitating a deeper understanding of properties without physical visits. The shift toward virtual tours has proven beneficial, with listings featuring them seeing a 227% increase since March 2020. The new partnerships support agents by providing low-cost, user-friendly 3D scanning solutions.

According to realtor.com, searches for homes in ski towns surged nearly 36% year-over-year in the fourth quarter of 2020, largely driven by residents from colder Northern states seeking outdoor recreational options. Snowbirds showed increased interest in ski towns, with views up 44.5% compared to the national average increase of 35.7%. The top ski towns saw a 127% average increase in home shopper interest. Notable towns include Union Dale, PA with a 225% search increase and a median listing of $185,000.

The U.S. housing market saw a historic low in the number of homes for sale in December, dipping below 700,000 for the first time, as demand remained robust. The median listing price rose to $340,000, reflecting a 13.4% year-over-year increase, despite a decline from a summer high of $350,000. Newly listed homes dropped just 0.8% compared to the previous year. The ongoing shortage of inventory and mixed trends in new listings highlight challenges ahead. Experts anticipate further lows in supply as COVID cases surge, impacting sellers' willingness to list properties.

Move, Inc., operator of realtor.com®, has acquired Avail, a Chicago-based platform enhancing the renting experience for DIY landlords and tenants. This acquisition aims to expand realtor.com®'s presence in the rental market, which is worth over $500 billion annually. Avail's tools assist landlords in managing properties effectively, with 90% using its free services. CEO David Doctorow highlighted the strategic importance of this acquisition in meeting the needs of a growing and underserved market. The acquisition terms remain undisclosed, but it is expected to bolster rental listing content and increase brand loyalty.

Realtor.com®'s analysis reveals that homes in high-risk flood zones have seen a sales price growth lagging by 5 percentage points compared to lower-risk homes over the past five years. For fire-prone properties, the gap stands at 3 percentage points. Despite a national surge in home prices in 2020, growth is expected to slow, particularly in disaster-prone areas. The report emphasizes the need for homebuyers to consider additional costs associated with insurance and mitigation when purchasing such properties. This trend is observable in states like California, Delaware, and Florida.

Realtor.com® has identified the top real estate markets for 2021, highlighting cities like Sacramento, San Jose, and Charlotte. These markets are projected to see a 6.9% increase in home prices and 13.1% rise in sales year-over-year, surpassing national averages. Key factors driving growth include the presence of high-paying tech jobs and relative affordability, particularly appealing to young homebuyers. Sacramento leads the list with a combined sales and price growth of 24.6%, supported by remote work trends.

The realtor.com® 2021 housing forecast predicts a 5.7% increase in existing home prices amidst strong buyer competition, despite looming affordability challenges due to rising interest rates projected to reach 3.4% by year-end. Existing home sales are expected to rise 7%, with single-family housing starts increasing by 9%. The recovery in housing inventory will be gradual, offering buyers some relief. However, millennial and Gen Z first-time buyers may struggle most with affordability as market dynamics shift towards a more normalized state.