The Housing Market
Many people thought that the housing market crashed in March 2020 however, many people still believe the housing market of today will stay strong for a long time because of the record-low inventory and interest rates. We all want the increase of the housing market, but nothing lasts forever.
People need a place to live and for that reason real estate is always going to be something important. If you look at the top three expenses in the world the first one is housing because it is one of the basic and the most important necessity for people. The second one is transportation because people have to use transportation all the time or cars. The third one is food. We do not even realize how much money we are spending while eating out.
You should know that, if you have a home, it is never going to zero. It will be the best investment that you have. Mortgage rates are relatively low. It is quite beneficial for people who are looking to get home mortgages. The 30-year fixed rate mortgage average in the US went down about one percent. In today’s world we cannot go out that much because of the pandemic therefore mostly real estate managers started doing virtual tours. However, normally people want to be inside the home before buying it. Because of that reason many people do not choose to buy a home based off a virtual tour.
A lot of people are out of work in the world. In America it is over 26.5 million people. Unfortunately, they have no income, and they are unemployed. Today many people do not have money to buy a house and many people cannot buy their house with virtual tours. We can say that the housing market can be in the fall during a pandemic.
What to Expect from the Housing Market in Summer 2021?
We expect to see some changes for the housing market in summer 2021. The whole world entered 2021 with Coronavirus pandemic. There has been rapid growth in home prices in the first quarter of the year. Looking forward to the next months, vaccines are making people hopeful to see the bright future. However, there are some housing market trends happening because the pandemic is expected to continue.
Interest rates might rise slowly but they are expected to stay relatively low. Homebuyers can focus on the suburbs. People think that the financial impact of the Covid-19 pandemic will be long lasting. Commercial real estate is going through the change because of the pandemic. Of course, we are getting vaccinated and that is great but there will be a percentage of the population that never takes the vaccine therefore Covid will come back as a flu every year. Because of that people are going to be more health conscious. They are not going to work in crowded places with all people. Workplaces are going to change in the process.
This is a bad new four real estate, but the good news is people want to stay at home. They want to have their own space and even home office. Therefore, when the commercial real estate is going down, residential real estate is going up. It is also going to reflect in the value of residential. If you are thinking about investing in real estate these days, you can go residential not commercial. Real estate is a core holding for so many people and families. If you are into investing, you can buy places that need a renovation, fix their kitchens and bathrooms, and resell them. It is the best way.