Ben's Real Estate Update January 2021
Is 2020 over? Well, yes, but this last week seemed to bring more uncertainty and chaos….Wow! A bright spot, we are celebrating my oldest son’s birthday this week, and my dad is scheduled to receive the COVID vaccine! I sure hope all of you are healthy and staying safe as we all look to this coming year to get back to living life the way we would choose.
And what about the real estate market? Actually, even with the news seeming to be full of nothing but uncertainty, the reality is the real estate market is still great for buyers and sellers. I know! Who would have thought?
As of this week, mortgage rates are again at a record low of 2.65%. Throughout 2020 we kept seeing record lows, and this week they’re even lower. This should continue throughout 2021. According to National Association of Realtors Chief Economist Lawrence Yun, speaking to Investor’s Business Daily:
The Federal Reserve is not planning to raise record-low mortgage rates
Unemployment will curb as vaccinations become more commonplace and the economy begins to more fully open up
Homebuilders will be building more to meet demand
Low interest rates are great for buyers and sellers. Buyers can buy more house, and sellers will have more potential buyers. Also a great time to refinance, and I’m happy to connect you with one of my preferred lenders.
BACK TO THE BURBS!
With many offices going to remote work, folks are looking to expand the size of their home, which usually means suburban areas. Experts anticipate that even with a vaccine, a larger number of business and employees will still choose to work at home. Are you looking to upsize? Let me get a valuation of your current home and explore your options for your next home.
STOCK MARKET STILL STOCKING?
This past week saw the riots in the capitol which usually leads to an impact to the economy and stock market, but not this time. According to CNBC, the stock market continued to rise after President-Elect Joe Biden was formally declared the winner by the Congress. It was shocking to watch, but ultimately had no bearing on the economy. A strong market is expected to continue throughout 2021 as the economy continues to open back up. Strong economy typically equals strong real estate market.
Not so fast says Wells Fargo’s Securities Economic Group. While many have been hurt by the pandemic financially, the forbearance offered through the CARES Act has limited loan defaults, and as the economy opens back up, more and more loans are being caught up. Additionally, low interest rates are allowing families to refinance, keep their homes, and improve their credit worthiness. The economists do not see distressed loans as near the problem they were in the 2008 crash because lenders have been better with extending credit, families will come out of forbearance and be able to keep their homes, and the market is undersupplied which means worst case, a home can be sold.
Wow! A lot going into 2021! As always, I’m here to answer your questions about real estate. Reach out to me, and as always, when you hear about someone thinking of buying or selling a home, will you CALL ME!!