What’s going to happen in the 2021 housing market? Direct and indirect factors will come into play…

DIRECT FACTORS: 

1. Home prices. Prices are high. We’re in a housing bubble, but we don’t know when it will burst.

2. Interest Rates. Buying power has gone up with low interest rates.

3. Income

4. Inventory. Prices continue to rise because demand is higher than supply. 

 

INDIRECT FACTORS:

1. Employment. The real economy is based on people’s actual wages.
2. Emotions. Buyers want to buy, while sellers are more cautious  
3. Inflation/Deflation/Stagflation. The dollar is worth less as the Feds continue to print Fiat money. 
4. Intervention from the Feds and the government through the following:
   1. 1. Lockdowns. This slows down the economy.
      2. Keeping interest rates low.
      3. Pumping money into the markets & economy.
      4. Forbearance and eviction moratoriums. This suppresses the inventory.
5. Migration. More people are moving to the suburbs.

My short-term prediction for real estate in 2021 is people are going to keep moving at a limited number. There’s still going to be very low supply.

In the long-term…emotions will run high when forbearance ends & unemployment continues, supply will go up as people decide to sell, and government stimulus will have less impact.

The future of real estate is not what matters.  What matters is YOU. Be prepared & productive, equipped & effective. Because THE BEST don’t wait to see what’s going to happen.  They find the opportunity and win in any market.