Real estate market predictions for 2021 – Is the market poised for a crash or a boom?

Given the current pandemic situation we’re living in, the housing market is undoubtedly a hotcake for the sellers. With the inventory continuing to diminish rapidly and the annual price growth reaching a record high level, the sellers are all set to make profits. Post a brief period of new listings coming into the Mississauga Real Estate market, things are gradually coming back to normalcy with the winter construction again on.

Buyers have long been looking forward for slowdown signs in the real estate market which has been hot since the recovery phase post-pandemic. Nevertheless, the prices keep skyrocketing. In fact, the asking prices of homes are surging in double digits (around 30% more than 2019).

Amidst all this, let’s take a quick look at the few housing market predictions for the year 2021.

  • Strong increase in buyer demand

In the current market condition, people who are not mowed down by the uncertainties of the labour market will most likely seek benefit of low rates of mortgages. Lower taxes, lower mortgage rates and good returns for investors in the sunbelt areas is making this pandemic period a great time to invest in real estate markets. As the companies keep offering work-from-home options, there are many families that move away from dense cities and shift to family homes in suburbs.

  • Sale prices of homes constantly keep rising

The housing prices are gradually flattening out and the experts think that this will continue till January 2021 and then again rise around the spring of 2021. With the affordable mortgage rates, this ensures that the sentiments of buyers will remain high even though the prices of homes see an upward rise. In order to control the rising prices, it is vital that the inventory gets added to the market and this will be most likely during the first quarter of 2021. In such a scenario, it would be best if one can consider using an estate agent who has the skills to negotiate and can understand the need of the buyers quickly.

  • Inventory isn’t increasing

The lack in supply of housing fuels the low supply-high demand situation. The situation of supply has grown more acute and the construction activity has already become a standstill. As per the latest research by Zillow, there are new listings that dropped by 7.4% and the reduction in inventory has reached 38% lower than what it was during the same time last year.

  • Real estate may become sluggish post 2021

One more survey done by economists said that though the real estate market looked optimistic till 2021, yet the scenario may again get cloudier post-2021. Much against the debates regarding the sustainability and contours of American economic recovery, the survey unravels a V-shape in the expectations of home prices.

While it is true that the housing market in the majority of the areas is going through a positive stage, the same can’t be said of the entire real estate segment. The focus of the market will depend entirely on the ability of the country to conquer COVID-19. Even though you have a business of gaming desktop sale, you would still have to take into account the bigger economic factors.