Ok, I know we have not received much good news this year. With the pandemic stepping in and throwing us all for a loop! Now, there seems to be good news on the way. The real estate industry has seen record-breaking growth since June 2020. Even after briefly being put on hold during the outbreak of the pandemic. Despite economic uncertainty, brought on by the spread of the pandemic, home buyers quickly snatched up whatever few homes were available for sale in 2020.
Consumers are eager to spend more on housing in 2021, as the economy continues to slowly recover from the pandemic. Strong growth is expected in 2021 for housing sales, and home prices.
The housing market is largely being driven by two factors: a shortage of available housing inventory and extremely low-interest rates. Double-digit growth in both list and sale prices show an extreme lack of inventory and incredible demand. A sure sign of a seller’s market. The housing market is still hot, but we may be starting to see rising home prices hurting affordability unless the mortgage rates continue to decline in 2021.
The pandemic has also impacted new construction homebuilders’ ability to fill the housing supply as they are running out of land. Because existing home inventory is already at a historic low. This has sparked a new suburban boom which has new home developers searching high and low for land to meet the rising demand in 2021.
The combination of these factors has pushed home prices to levels that are making it difficult for first-time buyers to save a down-payment. While we still face economic and health challenges ahead, the nation will continue to recover from this pandemic. The improving economy will continue to prop up the housing market. Industry experts believe the housing market will remain strong and is set to break more records in 2021.
Of course, there are a few indicators we should make sure to keep our eyes on. The main one in my opinion is the level of evictions. This could be a game changer. Many believe this will be high if the government does not step in. We will need to wait and see what happens.
So, if you were thinking about selling in 2020, and you didn’t because of the pandemic. You might feel better about your chances in 2021. Knowing that the market will remain strong for the foreseeable future.
By R. Jones
