Benjamin Gordon Cambridge Capital and Experts Try to Assess the Status of the Real Estate Market in 2021
2020 has witnessed a lot of activity in the real estate market. Aside from low mortgage rates, another pattern of human behaviour that was observed is almost “a mini-exodus” from respective cities and towns since work from home has become the new normal for all.
People started relocating to their hometowns since they could stay at home and “attend” offices. As we know many office-goers put up at rented premises for employment. But working from home means you can just save on the rent and move to your hometown to work. This also saves a lot of money especially when there are pay cuts and job losses.
Benjamin Gordon Cambridge Capital and other experts express their apprehensions related to real estate in 2021
According to one economist, it is quite likely that sales might lookup by 7%, and the prices will increase by 5.7% adding to the already escalated high levels pre-existing since 2020. It is also being assessed that mortgage rates might increase, and sales will increase due to an increase in demand, gradually recovering economy, albeit lower rates of mortgage.
As far as the demand and supply equation is concerned, buyer demands will be high and since the supply pace will be lower, it will drive the prices higher, however, at a slower pace as compared to 2020.
The main buyer group will comprise the so-called Gen-Z and Millennial buyers, with prominently first-time buyers being more on the list.
According to Benjamin Gordon Cambridge Capital, it is also being ascertained that the time for delivering the projects will take more time than usual because there are certain limiting factors that we must consider especially during the pandemic.
This period is marked by a persistent labour shortage, delay in delivery of raw construction materials, and abiding by the regulations imposed by authorities during the ongoing COVID-19 era.
As far as remodelling investments are concerned, this area is likely to see an increase and demand for “multifamily” rented premises by weakening a little.
Use of technology to entice buyers in 2021- An increasing trend
Many think that since the pandemic has imposed social distancing norms, approaching buyers personally is a far cry. As such, to reach out to clients and prospective leads, it is important to keep them in the loop employing greater use of technology.
For instance, you could focus on email marketing, use chatbots in your website so that the queries of your visitors can be answered round the clock.
Another trending activity in the real estate market during the ongoing COVID-19 period is that more and more people will avail the benefits of refinancing, especially when the rate of interest is low.
Surprisingly, despite the impending recession and economic instability across the globe, incidences of distressed selling are comparatively low. Interestingly, towards the end of 2020, the real estate market had a very low inventory with around 500,000 homes up for sale and with a mortgage rate that is at a 50-years low.