This week, I’m talking about the 2021 Stock Market & Economy Outlook.

Were you as surprised by the housing market in 2020 as I was? You wouldn’t guess that in the middle of a deep recession with double digit employment, that the housing market would be on fire this year...but that was certainly the case. 

Demand was strong despite uncertainties and record low mortgage rates helped grease the wheels for a 

Today, I’m talking about the housing and real estate market outlook for 2021. Danielle Hale, realtor.com chief economist says: “We expect sales to grow 7 percent and prices to rise another 5.7 percent on top of 2020’s already high levels. While we expect mortgage rates to tick up gradually, sales and price growth will be propelled by still strong demand, a recovering economy, and still low mortgage rates. High buyer demand and still-lagging supply will keep prices growing, but at a slower pace than 2020 as buyers contend with mortgage rate and price increases that create affordability challenges.”

So that’s good news if you’re looking to sell a home in 2021. But what about all this we keep hearing about people leaving the cities and certain regions of the country? What about all those companies with remote workers or brick and mortar retail companies who have failed in the pandemic - all of whom will not be renewing their leases. 

What’s going to happen in commercial real estate and in certain parts of the country? Already, about 10% of commercial loans are in trouble and the real fallout hasn't even arrived yet, since stimulus and PPP loans helped many renters stay afloat. 

Property prices appear to be collapsing in NYC. The work-from-home and less business travel trends don’t look good for office space and hotels respectively. Higher density in cities and the fallout from civil unrest in certain cities without the protections for property owners could depress commercial real estate in 2021 and beyond. 

For me, the general stance with real estate in 2021 is to be cautious. With so much upheaval, there will no doubt be opportunities, but I would be cautious about buying any type of real estate - especially with home prices continuing to new heights this year. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip.

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