What to Expect with the Housing Market Launching into 2021
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With the uncertain political landscape we are currently experiencing and living through in the United States, it’s no surprise that the housing market is also somewhat uncertain. There are still ups and downs with the economy and consumer buyer behavior due to COVID-19, but the overall outlook amongst experts remain pretty positive. Check out what the real estate experts have to say on what the trends are, and what they are going to be, launching into 2021.
According to realtor.com, things are still looking up in December for the housing market. Existing home sales are high for the fifth consecutive month through October, despite record-low inventory to make up for the dip during the spring months this year. Experts from the National Association of Realtors are saying that total existing-home sales increased by 4.3% from September 2020 to a seasonally-adjusted annual rate of 6.85 million. Compared to last year, home sales are up by roughly 27%, which is what is offsetting the spring market drop in home sales.
The stock market, in general, is looking up as well. Market Watch predicts Dow is due to have additional gains going into 2021 as consumer outlook and buying behavior is improving. These improvements are largely due to the mounting promise of multiple vaccines for the Corona Virus and Joe Biden promoting Janet Yellen as Treasury Secretary. Wall Street views Janet Yellen with positive eyes due to her help during the last U.S. financial crisis in 2008. So although there is much uncertainty amongst the general public, things seem to be looking up diving into 2021.
In late November, it was announced by the current Treasury Secretary, Steven Mnuchin, that he is going to end many emergency lending programs despite the growing needs of many U.S. citizens due to COVID-19 and the dwindling economy. This shift will hit small businesses and mid-sized businesses the hardest, however, Mnuchin reported that the Federal Government has done all it can do and they will no longer “prop up” these businesses. What does this mean for the housing market?
According to Housing Wire, “there doesn’t appear to be a significant and direct impact on residential lending”, however, it may depress the economy, which may affect the upwards trends the housing market is currently experiencing. Governments will be monitoring Mnuchin’s proposal, however, and there is some thought that Biden’s Administration may suppress this proposal.
Overall, the experts are giving a mixed bag of predictions for 2021 and what the future may hold with the impending inauguration, and how that will directly affect the housing market. However, overall things are looking relatively positive. Check back into our January Real Estate Rundown for more updates and predictions from the experts.
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Categories: Real Estate News