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2021 Market Indicators + Predictions

12/24/20  |  Caitlin Cintas

Read the full list below ↓

 

Will 2021 Deliver a Strong Real Estate Market?


 
Indicators are a great source of knowledge and insight into the future (almost as good a crystal ball). Right now, we have several key pieces of information that are important to note as we anticipate what might happen in 2021.

Ultra-low Interest Rates: They are historically low and are also fueling rising prices. Seldom - if ever - has there been a weak real estate market in a low-interest-rate environment.

Limited Inventory: Many areas around the US, including the Bay Area, are experiencing shortages of several types of properties, especially more affordable entry-level homes. More buyers than sellers usually fuel a strong market.

High Demand: The demand to buy a new home continues to escalate, fueled further by accelerated plans AND Millennials coming of age to buy.

Under-building: The US is under-constructing homes by MILLIONS.

COVID Vaccines: They are here and distribution is underway. There is now a clear path to significant relief and an end to the pandemic.

Stimulus Money: Trillions of dollars are already circulating globally and more is coming to further fuel the economy.

Elections: 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 the future direction in the Federal Government. Certainty has value.

The Takeaway: To answer the question so many have asked: will home prices drop in the Bay Area in 2021? It's unlikely. In fact, the competitive, multiple-offer environment we experienced in the second half of 2020 will continue into 2021. It's still a good decision to buy a house in the Bay Area IF:

  • you plan to settle down in the area for a long period (real estate is an investment after all) 

  • you have the funds to do so (+ take advantage of the historically low interest rates)


Work With Caitlin

Caitlin’s local instinct and personal network elevate her above her competitors. She understands the details involved in buying or selling a home and she is committed to providing an efficient and effective process from start to finish. Caitlin truly believes there is no better feeling than when a client is thrilled with their real estate experience.

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