This week Robyn Erlenbush and Amy Chorew, VP of Learning at ERA Real Estate, discuss the wrap up of 2020. We experienced a surge in real estate and the impact is ongoing. Inventory is at a record low, interest rates are still low, and home prices are rising. Here is their evaluation of the forecast for 2021.
Homeownership rates are reaching a high. After the housing bust of 2008, homeownership plummeted to its lowest level in 2016, and then began a climb that has gathered pace since 2020, potentially bypassing the last recorded peak in 2005 of 69%. (Source: Federal Reserve Economic Data)
Remote work has become the norm, setting off a chain reaction in home buying – people abandoning apartments in expensive cities where proximity to work or the lifestyle are no longer a factor, and purchasing in less expensive areas where they can afford a larger space to work and make their own entertainment. (Source: extraspace.com)
Before the pandemic, 3.6% of the population worked from home half of the time or more. It’s expected that 25-30% will adopt work-from-home long term by the end of 2021. That means at least 20% more people now no longer have geographic restrictions.
We know that people who work from home tend to have higher incomes and are more likely to own a home. We might be seeing people move from urban centers to suburbs and exurbs in states with more affordable prices, better climates, and more advantageous state income tax. (Source: globalworkplaceanalytics.com)
While more homes have sold and are continuing to sell than any year since 2006, all the major industry leaders predict this surge will continue. (Source: sarasotaglobalrealty.com)
In a market with eager buyers and few listings, knowledge is everything. If you are in the market to buy your first home, sell your investment property, or hoping to build, contact an ERA Landmark associate today. We live and breathe this data so you don’t have to!