According to the CEO of Redfin, the COVID-caused housing boom is likely to continue
well into 2021. In September 2020, housing sales and housing prices blew expert predictions out of the water; housing sales increased by 9.4% and the average purchase price of homes increased by 15%.
While this insane housing market can’t last forever, all good things must come to an end,
there’s a good chance it will last well into 2021. Many potential buyers have accepted the fact
that they won’t be able to purchase a home in 2020, and thus there is a massive “rollover” market of potential homebuyers ready to purchase in 2021, in addition to the normal demand we can expect.
The housing surge is predominantly driven by wealthy professionals who have remote
work available to them; it allows them to seek out distant suburbs. Another common occurrence
is that these wealthy individuals purchase a new vacation home and take an extended vacation
while working remotely. Wealth has its perks.
We wouldn’t be doing our jobs if we didn’t note that part of this red-hot market is moved
by record low mortgage rates, and those rates won’t remain low forever. Additionally, housing
prices are being inflated by low inventory, which is why new construction is absolutely booming
right now. Some experts also believe that inventory will increase after the election, as there will
be significantly less uncertainty in the world (people generally don’t make major financial
decisions when the future is uncertain, it’s a high risk, low reward move).
At the Chernov Team we understand that knowledge is power, and knowledge of how the
market is moving is powerful knowledge indeed. At the Chernov Team we know that whoever
comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.