In simple words, 2020 turned out to be a “roller coaster” for real estate. Speaking about the real estate market in the current year, it is impossible not to recall the state program of preferential mortgages – the opportunity to buy housing at 6.5% per annum and cheaper led to the market quickly overheated. What will happen in 2021?
What Happened In The Property Market In 2020?
2020 started like all previous years– no one expected a record in construction or mortgage lending, but the industry prospects were regular. Everything was happening as usual. But in March, the coronavirus began to ” lockdown ” industries-starting with tour operators and airlines. In April, almost the entire economy was sent to forced downtime globally, including the USA. Construction work was banned up to a significant extension.
All these caused problems to the real estate industry. Many people lost their jobs and income. Banks have tightened their lending procedures due to quarantine.
What factors will affect house prices in 2021?
In 2021, different prices will affect house prices:
- Possible fluctuations in the exchange rate,
- Falling income of the population,
- Switching to remote work format,
- The possibility of new restrictions due to the epidemic.
Real estate in 2021:
2020 showed that the future.We need to plan carefully while concluding a real estate transaction. If you want to sell houses in Sherwood, Arkansas, let us help you. We buy houses in Sherwood, Arkansas. We take care of all formalities and buy your home quickly. In 2021, the real estate industry will balance between two main trends- a downturn in the economy on the one hand and low rates on the other.
Falling real incomes of the population, rising unemployment, tectonic shifts in consumption- all these factors will affect the overall cost of houses, down payments, and monthly mortgage payments. This could reduce the demand for real estate. On the other hand, the period of low-interest rates is expected to continue this year. The factors that put pressure on the flow of the deposit mass into investments, the availability and attractiveness of mortgages will continue to operate. Also, authorities are talking about extending preferential mortgages to secondary housing. It is impossible to terminate the mortgage program for primary housing. In 2021, the sales of new buildings will be slow. The market will stabilize in the middle of the year.
Pessimistic scenarios do not imply stabilization.The strengthening of any of the existing negative factors can lead to a sharp gap in seller’s expectations and buyer’s capabilities. The primary real estate market will adapt faster as it was in 2015-developers immediately reacted to the jump in the exchange rate with all its consequences and sharply increased marketing activity — increased advertising in combination with discounts, gifts, installments, promotions, and prizes.
In 2021, real estate prices will continue to rise faster than inflation. If you want to sell houses profitably, then contact us. We buy houses in North Little Rock. We will immediately respond to your call and purchase homes in all conditions.
Remember, the second wave of coronavirus can negatively affect the real estate market’s overall development in 2021.It will ultimately cool the demand for homes in the market. We are a leading cash home buyer in Arkansas. We will evaluate the house’s actual value and help you get the pre-agreed cash soon after the deal.
In a nutshell, real estate prices will decrease in 2021. The latest trend is not very optimistic for both buyers and sellers. The financial market will decline this year. Nevertheless, several COVID-19 vaccines’ launch reduces the risks of new lockdowns. A soft monetary policy will help the real estate market. People will want to get rid of old houses and buy more comfortable and spacious homes. We will help you in this process. We buy houses in Arkansas, give you the pre-agreed cash. It allows you to make decisions without being affected by financial constraints. The low mortgage rate may support demand in the first and second half of 2021.
