Despite the whole pandemic business in 2020 and even 2021, the real estate business is still thriving. Why? Because the need for houses has not reduced at all. If anything, it has grown with the reduction in houses listed in inventories around 2020.
So, if you’re going to invest in real estate, there’s no better time to do it than right now when the market is saturated with demands.
Nevertheless, it’s not safe to jump into the pool without first checking its temperature. The real estate market can be volatile.
So, it’s necessary to know what to expect especially if you’re a first timer. To this end, we have had an interview with Jacques Poujade, a mortgage expert and a managing partner at LednPlus, about what the real estate market may have in stock for us in 2021. He had these to say;
Prices and Values of Homes Will Continue to Rise
Since 2020, the prices of homes in various states have been rising steadily and according to CoreLogic, a property analytics firm, the prices of homes reached a 6-year-high in September. In some states, the increase was even more. No state was left untouched, including the ones that suffered the effects of Covid.
Despite this increase, it has been predicted that by this September, there’s likely to be a slower economic growth which may in turn affect the prices of homes and cause a lower asking price.
More Construction
Because of COVID regulations, construction in different parts of the country has been placed on hold thereby contributing to the reduction of construction inventories. Right now, construction has started, and it is likely to help in the reduction of asking prices.
If your house is a high-end area where there are likely to be better constructions, it would be better to calm down before selling as it might affect the price. You can also consider some renovations. There are also other methods you can apply to increase the value of your house in relation to the new construction.
Effect of a Remote Workplace
As a result of COVID, a lot of companies had to encourage their employees to work from home. Since this idea was so easy, not to mention great at cutting costs, it is highly likely that this practice will continue.
What does this mean for real estate?
It means that if you have homes around office areas where startups and other businesses used to thrive, it is highly likely that you’ll see a decline in demand. However, if you have homes near recreational facilities, it is highly likely that you see an increase in demand as people will want to move to more hospital places. Especially when they don’t have to stay in places close to their offices any longer.
In fact, some companies have anticipated this and encouraged employees to move. An example is the company Zapier which has given its employees a sum of money to move out of the office area.
These are just a few things that Jacques Poujade has shared with us, you can learn a lot more from his wealth of knowledge by going to his real estate website.