Many people who had grand plans of making a splash in the real estate investments world are now asking the same questions: is it really a good time to be investing in real estate? What trends will shape the real estate market post COVID? Should I buy a new home? Should I hold on to my property or sell it?
Now, these are all valid, real questions – especially after all the uncertainty that has shrouded the real estate market in recent months. In this article, we’ll discuss the trends that are set to define the real estate market in the U.S in 2021, and beyond.
All of these are real, valid questions – particularly after the unexpected hot the industry has sustained in recent months. Over the course of this blog post, we’ll take a look at the trends that are set to shape the U.S real estate market in 2020.
Demand For Housing Remains Strong
While many expected housing demand to take a nosedive during the pandemic, it remained strong throughout 2020, surprisingly, and that isn’t expected to change for the foreseeable future. Housing supply, on the other hand, has definitely taken a hit during the pandemic.
So considering the strong demand and faltering supply, it’s definitely looking like it’s going to be a seller’s market for now.
Furthermore, for the millennial population, it’s the peak home-buying season. A rising number of millennials with disposable income are moving out, with 32% of them purchasing homes for space, and 34% purchasing homes for family. Now regardless of the reasons, we’re seeing an increasing number of millennials investing in real estate, its positive news for the industry as a whole.
Supply and Construction
As we mentioned above, the supply for housing has been impacted by the COVID-19 pandemic. There’s a shortage of residential properties for sale in the U.S, and new construction prices are expected to rise once the industry starts to function normally again.
Although new home construction market taken a hit, construction prices are projected to either rise or remain stable after a hiatus as prolonged as the one we’ve just experienced. But since oil prices have come down significantly in recent months, construction prices aren’t expected to rise to stratospheric levels – especially for the new housing market.
The Bottom Line
So, is it a good time to be making a real estate investment? Well, the short answer is: yes, it is – despite the low supply. Surprised? Well, allow us to explain. You see, the uncertainty and paranoia brought by the pandemic has led to many Americans thinking of getting their own roof so they’re better prepared for times like these.