In the wake of the 2008 financial crisis, the question on everyone’s mind is always, “Is the real estate market going to crash?” whenever there is trouble in the economy. And although the pandemic caused the housing market to have some ups and downs this year, the 2021 real estate outlook shows that positive change and growth is possibly on the way.
Check out our 2021 real estate outlook.
Low mortgage rates
The Federal Reserve has set rates at record lows recently, and lenders have been offering qualified buyers incredibly low mortgage rates as a result. With the government aiming to encourage economic activity, these rates are likely to remain low for the near future, and homeowners and buyers will continue to have opportunities to borrow at prime rates.
Increased government support
Despite the fact that additional stimulus package negotiations in Congress have stalled in recent months, there are still many elected officials who will make it a key part of their legislative agenda for the 2021 session. With the pandemic dragging on far longer than many people ever could have expected, buyers should see an increased commitment from the federal government to pump money into the economy early next year.
The permanent surge in work from home trend
It’s safe to say that in many industries, the work-from-home office is not going away even once a vaccine reduces transmission of COVID-19 to low levels. Companies of all shapes and sizes have found that their employees are more productive from home, they experience greater work/life balance without a long commute, and businesses can save on fixed costs by reducing physical office space and other capital assets. When people spend more time at home they think about the utility and design of their home more, and desirable properties increase in value. An increase in the number of people working from home means that more people will be willing to invest additional funds in the real estate market.
The onset of the pandemic and the closing of many economies quickly shifted many American families from spending into saving mode. Now, however, those savings are starting to revert back into increased spending again, which generally means an increased demand according to real estate market predictions.
Desire to invest in stable assets
It’s been a tumultuous year for almost everyone, and most experts agree that investors will be looking for ways to add some stability to the mix for 2021 and beyond. The stock market, in particular, has seen some wild fluctuations throughout 2020, and the typical pattern is for investors to shift toward the relative stability of real estate in times when the stock market performance is lagging.
With these factors taken into account, the 2021 real estate outlook looks strong, especially for the Greenville, SC area. The agents at The Parker Group have decades of experience in Greenville real estate, and they pride themselves on guiding their clients efficiently through the process and helping every buyer and seller get the best deal possible. Contact the Parker Group if you’re looking to buy or sell property in Greenville in 2021.