It is important to keep up with what is happening in the real estate market. For more on this subject, go here to learn more about seling a rental property.
Seeing the trends and predicting what will happen helps you make more profitable decisions.
Here’s some research I uncovered for you…
- Even with the pandemic, the number of homes sold in 2020 went up 5.6%
- House prices rose in every major market
- House prices in December 2020 were 8.4% higher than December 2019
- Inventory of homes dropped by ½ to historic low levels
- Demand fueled by low interest rates continues to grow
- Interest rates are expected to stay low – maybe up to 3% for the remainder of the year.
- Prices are expected to rise 10.5% in 2021
If we load these facts into our crystal ball, we can make some predictions for this year.
- It will continue to be a strong seller’s market with high demand and low inventory.
- Rehabbing will offer incredible opportunities with houses selling quickly & above list price.
- Motivated sellers still exist and need to get rid of their properties fast.
- There will be much competition for houses, so we, as investors, need to be even more creative with our marketing to find niches where other investors are not looking.
- Wholesalers will continue to be able to sell houses quickly and for top dollar.
- I do not see the moratorium on evictions and foreclosures being lifted prior to fall.
- Although I expect the onslaught of foreclosures to dump much need homes into the sales inventory, I don’t believe it will be enough to sway the market all the way to a buyer’s market.
- I project that by year’s end or more likely early 2022 we may start to see a shift to a more balanced market.
See if you agree with my predictions.
The questions you should be asking yourself are:
How do I take full advantage of this hot market? What do I need to change?
Feel free to share your thoughts with me on the state of the market.
Expect abundance,
Lou Castillo
