Real Estate Rundown January 2021
January 04, 2021
Consumer Sentiments Increasingly Positive with New Coronavirus Vaccine
As we ring in the new year, consumers are more hopeful and positive than in months past due to the Coronavirus vaccine. Although sentiments are on the uptick due to the nationwide distribution of the vaccine, experts caution that the pandemic is still far from over and the public should not let their guard down just yet. Dr. Anthony S. Fauci emphasized on “CBS This Morning” that “We should celebrate the fact that the science has come through, but it is not over yet. We have a ways to go. We have to abide by the public health measures that we talk about all the time.” So for now, it is business as usual until health experts say it is safe to go back to “normal”. What does this mean for the real estate market? Read more below for insights into how early 2021 is shaping up.
Top Home Buying Trends for 2021
World Property Journal did us the favor of summarizing the top home-buying trends for 2021. Two trends that stuck out to us is the popularity of homeowners looking for new construction and the push for small city living. The desire for new construction means homeowners will be looking to move out of their existing homes to fit these needs. According to World Property Journal, newly pending sales for small cities are up 34.3% since last year. This is largely due to homeowners being able to work from home.
Mortgage Rates Continue to See Movement
According to multiple sources, mortgage rates are remaining flat or continue to hit record lows. In some reports, they are seeing a continued trend downwards for mortgage rates, and there may be a trend of downward movement due to the potential for a stimulus deal. HousingWire reports that purchase applications rose for the sixth straight week to the highest levels since January and experts predict these record-low mortgage rates may introduce first-time homebuyers into the market, which means more people looking to move.
Things Are Looking Up with a Big Stimulus Plan on the Horizon
According to US equity strategist Jonathan Golub, we can expect to see “the biggest stimulus plan ever known to man”. Stimulating sectors like healthcare and financials, experts are predicting this stimulus plan will reopen the global economy in many ways. The stock market will see quite the stimulation for investors. Although MarketWatch says Golub’s comments may be “extremely positive” they still said that stocks are “moving nicely higher”. We shall see what the future holds.
All in all, 2020 has finally come to a close and there is a lot to cautiously look forward to in 2021. The vaccine is giving hope to consumers while doctors say it will still be a while until everything is safe. Trends show people are looking to move to new construction and out of the city. Consumer sentiment is on the rise and mortgage rates remain the lowest they’ve ever been. And the largest stimulus plan is looking to kickstart the economy in many ways. So although we still have quite a ways to go, trends are overall pretty positive for 2021.