Most Anticipated Real Estate Market Events Of 2021
2020 was not an easy year for the American real estate market. The problems associated with the coronavirus infection were added to the accumulated difficulties. Several long-standing problems are also overdue- from determining the apartments’ status to testing the draft law on the territory’s integrated development. Let’s look at some of the most popular trends in the real estate market in 2021. This will impact your decisions heavily.
Overcoming The Coronavirus Crisis
The spread of coronavirus infection has hit all sectors of the economy to one degree or another. The real estate industry is not an exception to it. One of the industry’s main shocks was the complete or partial suspension of construction projects in several regions for several weeks. This led to the postponement of commissioning dates and financial problems for companies and a new burden for them to comply with all epidemiological regulations.
Commercial real estate companies experienced strong shocks. Due to quarantine measures, hotel occupancy plummeted. Traffic in shopping centers significantly decreased. In some areas, they were fully closed. Throughout the year, tenants and landlords tried to reduce losses in every possible way and even fought with each other. Many tenants have had to vacate their premises.
We will soon see changes in the office segment as well. More and more companies began to abandon the classic offices in favor of co-working spaces, which are cheaper and give more maneuverability when switching to remote work. The development of co-working spaces may continue. It will take a considerable amount of time to return to normal business life. If you want to sell your space, contact us. Our specialists will take care of everything and buy your space legally.
The Fate Of Preferential Mortgages
In the spring of this year, as part of anti-crisis measures, the government launched a program to subsidize mortgage interest rates up to 6.5% for the purchase of apartments in new buildings. The effort turned out to be more than effective – with small budget expenditures, it made it possible to attract millions of dollars in the real estate market. It will be interesting to see whether the US government will extend the generous program and take any measures to limit the growth of housing prices.
The Demand for Renovated Houses
When buyers look for houses, they want to purchase good accommodation with all facilities. Such a home should be in good condition. Lack of maintenance, broken infrastructure, cracks on the wall, leaking tabs, contamination on-premises- all these displease potential buyers. They will view the house and go away without giving any hint. Due to the coronavirus, lockdowns, loss of jobs, an economic slump and an unfavorable business environment, most people have no funds to renovate houses. If you are facing the same situation, don’t get worried at all.
Financial Market Volatility
Financial market volatility may decrease in 2021. A soft monetary policy will support stock markets. This situation is favorable for the American economy.
The spread of remote work can lead to the fact that a part of the population will spend more time at home, and the purchase of comfortable housing will become a priority for people. Against the background of low mortgage rates, this may support high demand in the first half of the year.
The negative aspect is the decline in household incomes. Real disposable incomes have been declining for several years in a row. For the first nine months of 2020, the indicator fell by 4.3% year-on-year. In previous years, the decline was offset by cheaper mortgages. However, as prices rise and interest rates stabilize, this factor will begin to pressure demand.
Forecasts in absolutely any industry are based on past experience. However, none of us have ever experienced a complete shutdown of most global economy segments before. So. it is quite difficult to analyze the market situation, including the real estate sector. If you want to sell your house profitably during the pandemic, contact us. We buy houses in Sherwood, Arkansas. Get started with us and sell your home faster.