If you are asking how will the real estate market play out in the future, you’re in the right place? The virus has brought some difficult times, but there is light at the end of the tunnel, we believe. We expect things to continue its path of growth from this past June.
Real estate business during Covid-19.
Unfortunately, the real estate market took serious drawbacks this past spring due to Covid 19. With the pandemic starting stay at home orders and health concerns, it disabled many sellers from listing their homes, which slowed down buyers from searching for a home. That is more than likely due to the risk of someone entering your home with the virus.
Luckily, real estate sales eventually soared again around mid-June. However, the damage has already been done. The pandemic had created a tremendous economic disaster in job markets and real estate around the world.
The worst had returned. Most people were reliving the 2008 recession all over again. Like then, homeowners were having a difficult time paying mortgages. The unemployment rate still sits at an all-time high.
Most people had to rethink about selling their homes during the pandemic since houses were now turning into classrooms, offices, restaurants, and workout facilities.
How is the real estate market right now?
How is the real estate market right now, you ask? Since mid-summer, real estate has seen significant growth. Despite the ongoing uncertainty of the pandemic, home buyers are still buying up the small few homes that are listed for sale.
Due to double-digit yearly growth in both listing and sales price, the motivation behind the market is dependent on two factors being a limited amount of available housing and incredibly low-interest rates. This is a good sign we are in a seller’s market.
In the last decade, we have seen an increase in home sales. Take into consideration the past few months in which are usually slow going into winter but remained at a steady pace. This resulted in buyers’ and sellers’ consistency over the last few months.
Will real estate prices go down in 2021?
It really hard to imagine home prices going down. I love to answer that question with a no. The results are really up to Covid and how long it takes to expire. Although, economists from realtor.com predict that the real estate market will be a lot more normal than we saw in 2020.
Buyers will now have to deal with the challenge of higher home prices and mortgage rates. Although, I do believe the sale of homes will stay consistent going into next year. If you are planning to purchase a home should manage and budget wisely.
With a limited amount of houses being sold, you should be more amendable to something different such as features, location, and style of home or at least open-minded. The good news is that in 2021 we expect strong home sales, especially towards the summer when things start to warm up.
Does real estate always appreciate?
I guess your asking, can you nab the perfect home to appreciate in the future? That is really a hard target to hit. Some specifications can be reviewed to help assure you pick a good investment for the future.
To answer your question, yes, I believe real estate will and will always appreciate in value. Maybe not by much today, but over time. If your patient and watch the market, you can make a good capital gain.
I would suggest buying a home for your primary needs first. You might lose sight of what is vital as your primary residence. It is imperative to find a home that best suits you and your family’s needs because the real values can be highly unpredictable.
Once you settled in, just keep an eye on the market so when you are ready to sell, you stand to make more money on your home than you previously spent.
Market forecast for the next 5 years.
Technology is rapidly moving. I said that to say that it is a good chance you will have more ibuyers, energy vehicles, and energy-saving homes along with other new trends. I know the pandemic makes one’s vision dual of the future, but real estate looks like it will be taken over by technology.
Not everyone can tell the future. Something to think about is there is no telling what is in store for the future.
Will real estate agents be replaced by robots?
The future is full of new technology, gadgets, and applications. However, the robots taking the job of selling real estate is far fetched. Technology might be able to locate a home, but matching the heart and soul of a homeowner would be very difficult to assume.
Homebuying takes a passion that something without emotions might not understand. Real estate agents learn from dealing with many homeowners and are very good at adapting to the feelings of the seller. I am no engineer in Artificial Intelligence, but I have to assume that emotions would not be an aspect of a robot that is good.
In other words, robots are created for direct intentions but dealing with people does not seem like one. For instance, I don’t think they’re programmed to be considerate and mindful. Not to mention there is more to it than just showing up and being present.
Does real estate protect against inflation?
In all actuality, real estate will work hand and hand with inflation. Your home value will increase, and so will inflation. This would be very beneficial to a landlord, who could now increase the rent and collect higher rental income.
In most economies, inflation can be tremendous. It’s common in any real estate market. Seasoned investors can prep for these types of situations by coming up with ideas that perform better overtime during the market shift.
Sadly, we don’t have a say in when the market change. It’s based on natural events. There is no telling what the future will hold, and with covid-19 raging out of control, everything is still in limbo. However, it does look like the near future will bring some similar events. Homeowners may see a wave of foreclosures, but investors may benefit because of more inventory to purchase.
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