December 2020 – Is this prediction good or bad news for home buyers and home sellers? Expect more of the same—or better—with regard to real estate in the coming year. The housing market will continue to hold strong as the rest of the economy rebounds from the coronavirus-driven recession.
Thirty-year-fixed rates may increase over the next 12 months, but it will happen slowly. Buyers will keep on buying homes, although it might impact their willingness to pay a premium to land property.
New listings declined in 2020 compared to 2019. But “as COVID-19 cases hopefully decline due to vaccination, We expects more new listings to make for a more balanced market and more home sales.
Homebuilder are borrowing more money to build as a result of the low interest rates.
With social distancing measures, remote work, homeschooling, and more, many settled into a new lifestyle in 2020—away from the hustle and bustle of once-thriving city centers and the high costs of living that came with living nearby.
Work-from-home employees are leaving expensive rentals for affordable homes in the suburbs.
As residents flee expensive cities, places like San Francisco and New York will inevitably take a hit—especially when it comes to tax revenue. These cities will have to be reborn with a greater emphasis on culture and lifestyle to attract residents and tourists.
The fact is homebuyers will have no choice but to rely on virtual tours.
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