Surely, the heat must fade as prices get out of control and demand flows somewhere else. By signing up to be a member of Real Estate Winners, you’ll get access to our 10 best ideas and new investment ideas every month. 4) Finally, stay on top of your wealth and sign up for Personal Capital’s free financial tools. All that wealth could be shifted to real estate. Want to make sure you’re primed and ready for what 2021 has in store? Therefore, there will be a large demand curve shift with renters looking to finally buy a nicer place to live. I expect this trend to continue for decades. In 2021, America will experience a shift in the housing market, as millions of borrowers will emerge from forbearance plans. Your email address will not be published. But if you believe in a V-shaped recovery in big cities, there are opportunities to be had in buying rentals. It’s left many wondering: Will there ever be an end in sight? Short-Term Outlook Based On The Last 12 Months. Do you really want to live like a pauper for the next several years, waiting for a vaccine that may never come? Real estate is hot and the pent up demand is nuts. Our 10 Best Real Estate Investments RIGHT NOW! The work from home trend means commuting long distances is no longer as big of an issue. Thankfully, the Pelican State is not already among the U.S. states with the highest bankruptcy rates. Great article. But if you are going to spend hundreds of thousands or millions of dollars on a home, you want to go inside and feel the presence of the home first. But again, home prices are not falling, but rising. However, due to the following reasons below, I believe U.S. national median home prices will likely continue to reach new highs. CrowdStreet is focused on sourcing attractive multifamily properties for investors to take advantage of the boom. (It can take anywhere from a few months to a few years, depending on where a borrower lives.) My wife as able to double her life insurance coverage for less with PolicyGenius in 2020. The exact timing for this wave will depend on each state’s unique foreclosure timelines. Millionacres does not cover all offers on the market. Even CMHC mentioned a doom and gloom 25% drop in home price scenario. This map shows why investing in the heartland of America is likely a strategically sound move. This is the Yin / Yang of finance. The pandemic has reminded us that tomorrow is not guaranteed. Another glimmer of hope lies in recent mortgage application data. But what’s really happening is that the housing market is on fire in 2020 and doesn’t seem to let up. Construction is likely to pick up, too. December 2, 2020 2021 National Housing Market Forecast and Predictions: Back to Normal To say 2020 was a year of surprises is an extreme understatement. Financial Samurai is now one of the largest independently run personal finance sites with 1 million visitors a month. At one point, over 30 million Americans have filed for unemployment. While there’s no telling the future, there are some glimpses of what housing may look like in the new year. Given the west side is mostly zoned for single family homes, the area is less dense as well. This trend will likely continue and explode higher once there is a vaccine available to the masses in 2021. Therefore, expect to see more capital invested in real estate. Yun’s 2021 housing forecast and recap of 2020 forecast. You believe in my housing market predictions for 2021, then you should also invest in multifamily properties. As of July 27th, the multi … But it’s also amazing how strong the May US pending home sales rebounded. To be clear, no one can predict future economic or housing conditions with complete accuracy. If housing prices decline by up to 5% over the next 12 months and mortgage rates continue to remain low, housing affordability goes up. The pace of price increases will likely slow down, as demand from the fist half of 2020 gets exhausted. In my Housing Predictions 2021 post, I state that the national housing market could soften by up to 5% in 2020, followed by a rebound to new record-highs in 2H2021. More from … Some companies have explicitly said that if you want to relocate to save on living costs, you will also have to accept a salary cut. Credible is a top mortgage marketplace where qualified lenders compete for your business. www.cafemedia.com/publisher-advertising-privacy-policy. I’m personally buying as much ocean-view property on the western side of San Francisco as possible because I think it is undervalued. Multifamily properties and other commercial real estate have lagged the stock market and single family home prices so far. Baton Rouge, Louisiana, is expected to see a housing market downturn of 2.3%, the worst in the nation, after the coronavirus pandemic. Keep in mind it takes a construction start about seven months until completion, according to Census Bureau data, so we won’t see that inventory right away. For big cities like New York City and San Francisco, I believe there will be a V-shaped recovery in demand in 2021 as hundreds of thousands flock back to big city living again. Best article I have read recently in the topic. Grim Foreclosure Predictions for 2021: What You Can Do Now ... over the nation's eight-year housing market boom, and the predictions are eye opening. Find out how you can get started with Real Estate Winners by clicking here. People want to buy homes with views, more land for their children, and homes with home offices. Meaning, general housing market predictions are that housing prices will fall through the end of 2020 before recovering in Q3 of 2021. When these waves do hit, investors will find themselves with plenty more options to choose from -- not to mention a major boost in affordability. Overall, I believe the housing market will stay strong in 2020 as demand gets pulled from the first half of the year and into the second half of the year and into 2021. In some states, prices skyrocketed even more (12% in Idaho and 11% in Maine and Arizona). Check this page each quarter for updates to the West Palm Beach Real Estate Market Forecast. When the unemployment rate was surging, the delinquency rates on auto loans, credit card loans, and mortgages were also surging. Millions more people are deciding whether it’s best to keep hoarding cash or actually spend their cash on a better lifestyle. Most foreclosure moratoria have already expired, and as mortgage relief options run out, lenders will start to foreclose on borrowers who’ve yet to settle up. And experts over at CoreLogic (NYSE: CLGX) expect appreciation to slow even further. Notice how $600 is worth between $645 – $700 in states such as ND, SD, NE, KS, OK, MI, AK, MO, IN, AL, OH, KT, and WV. Finally, let’s talk about mortgage rates. As time goes on, I have no doubt the U.S. personal savings rate will go back to the historical range of ~6% – 7% pre-pandemic. Banks are requiring 20% or greater down payments and 720 or higher credit scores for a jumbo loan. Mortgage rates: … Compensation may impact where offers appear on our site but our editorial opinions are in no way affected by compensation. With at least two viable vaccines with a ~95% efficacy rate from Pfizer and Moderna, I think the housing market will continue to reach new highs in 2021. To learn more about CafeMedia’s data usage, visit: www.cafemedia.com/publisher-advertising-privacy-policy. On the other hand, if there is a Blue sweep, the nation should expect massive government stimulus in 2021. Look how much wealth has been created in the stock market so far in 2020. Real estate provides shelter, is a tangible asset, is a defensive asset, and can generate income. 5 Florida Housing Market Predictions for 2021 The population will increase The current population of Florida is 21,993,000. While they may not hit record lows again (like they did almost a dozen times this year), they should remain low in 2021. In fact, some rental property valuations have gone down in big cities as rental prices have declined. PolicyGenius is the easiest way to find free affordable life insurance in minutes. Working from home is more efficient. The demand for housing is strong due to record-low mortgage interest rates, more time spent at home, the desire to invest in a more stable physical asset, and strong demographic trends from the millennial generation, who are in their prime home buying years. However, price drops aren’t expected in Southern California. appeared first on The Motley Fool Canada. There’s no crystal ball that can foretell the future, and with a wildcard like COVID in the mix, anything could still happen. Real estate is my favorite asset class to build long-term wealth for most Americans. The income earned is also 100% passive. Here are more detailed thoughts about my housing market predictions for 2021. Wow thanks for such an insightful and detailed post! I believe there will be a permanent desire for employees to work from home 2-3 days a week and companies will allow it to retain employees. Real estate is my favorite asset class so thanks for sharing so many insights on the housing market! lessons from the 2008-2009 financial crisis, invest in real estate within your own city, Real Estate Outperformance Examples During The Pandemic. People want to buy homes that are in less densely populated areas of their city or in a different state. The sweat spot for real estate is when stocks are down ~10%, as is currently the case. 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