Life would be a lot easier if people could predict the future, wouldn’t it? In no industry is this more true than in real estate. The market is fickle at the best of times, and prices are constantly fluctuating.
Still, the market doesn’t leave us totally in the dark. Looking at trends from the past and present, it’s possible to make meaningful, educated predictions as to how things will fare in the next few years.
There’s a knack to it, for sure. But if you understand the real estate outlook, and how it works, you can have a much easier time in the business.
The Real Estate Outlook for 2021
2020 has been a chaotic year, and it’s understandable to have reservations about the market outlook for next year.
Generally, the predictions for the housing market in the next year aren’t great. Predictions vary, but most of them expect some sort of dip in housing prices for the rest of 2020 and into 2021. According to Freddie Mac, which provides one of the more optimistic appraisals, things may level out by late next year.
But that’s an optimistic prediction. Many others, such as Zillow, predict the cost of housing to drop by as much as 3% over the next year, as a direct result of COVID-19 and the national lockdowns.
However, most sources also expect a recovery, albeit a slow one, starting late next year. This isn’t the best news for those looking to capitalize on the low prices that COVID-19 has resulted in, as they are expected to remain low for at least another year.
Still, the outlook could be a lot worse, and there is some opportunity for investment. Taking advantage of the low housing prices to acquire high-end property can be a strong investment. And a patient investor could see a good return when prices begin to rise again later next year.
How Best to Invest in 2021
If you’re looking to make money on the real estate market over the next year, things may be a bit grim. Housing sales have plummeted by 15% over the last year, as a result of national lockdowns. Combined with the loss of housing value, and it may be difficult to see a profit for several months.
Still, there are some options available. Cash home buyers offer an immediate payout, and the sale process is faster than traditional methods. It’s also cheaper overall. Cash sales have risen dramatically in recent years and may be a good option in this difficult market.
Making Good Investments in the Coming Year
The housing market is going through trying times right now, and prospects aren’t great. But there are still opportunities to make money in the real estate market. And next year’s real estate outlook, though not great, is better than it could be.
So get involved in the real estate market now. With a good understanding of the market outlook, turning a profit is still possible. For more interesting articles, check out the rest of our website!