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2021 Real Estate Indicators

12/10/20  |  Liz Lyster

It’s December, and we’re already being inundated by Top Ten lists and retrospectives of 2020. But Ellie and I are already looking forward to 2021’s real estate market. Though we don’t have a road map to the future, we do have the skills to analyze various real estate indicators.

Real estate indicators are a great source of knowledge and insight to the future, and right now we are confronted with several touch-points that are important to note as we anticipate what might happen in 2021.
 
Financial Indicators
 
  • Ultra-low interest rates. They’re historically low right now, and we anticipate them staying low for months. Seldom—if ever—has there been a weak real estate market when interest rates are low.
  • Stimulus Money. Governments are helping their citizens during the Covid crisis. Trillions of dollars are already circulating globally, and it looks like more is coming to further fuel the economy.
  • “Bonus Season.” Yes, many people will be getting bonuses this year, especially in the financial and technology markets where some companies have boomed. This capital will fuel real estate markets.
  • Record equity markets. Not only do they make people richer, they make them feel richer; and that puts people in a good mood. Moods often drive markets as much as money.
Supply Indicators
 
  • Under-building. The United States is behind its average rate of constructing new homes, by millions.
  • Low inventory. Fewer homes are available, especially of more affordable entry-level homes, and more buyers than sellers right now can fuel a strong market.
  • High demand: Millennials are coming of age and are buying homes now. 
Consumer Confidence Indicators
 
  • COVID Vaccines. They are here and distribution is about to start. Millions will be vaccinated every month. There is now a clear path to significant relief and an end to the pandemic.
  • Political stability. The election insanity of 2020 is coming to a close. By the time the run-offs are complete in January, we will have a better understanding of future direction in the Federal Government. Certainty has value.
  • The optimism of spring. Spring markets are often strong markets around the country. They fuel optimism, hope, and renewal.
Overall, we’re looking forward to a strong real estate market in 2021. Thinking of buying or selling? Contact us; we’re here to help.

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With their complementary communication styles, responsiveness, competence, and ability to truly listen, Ellie and Liz enable their clients to feel at ease throughout any real estate transaction. They would welcome the opportunity to be your next real estate advisors.

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