2020 shaped up to be an unprecedented year with lots of uncertainty for all. With the COVID-19 pandemic still underway globally and shutdowns still in effect, much remains up in the air when it comes to “returning to normal life.”
For the housing market and those in real estate, it was also a year of growth and shifts as more people turned to the comforts of home and sought out new properties to start their socially-distanced, remote work, and homeschool lives.
Here in Connecticut, many moved away from the nearby city life to suburbs and neighborhood homes, resulting in a broad market increase for home sales.
Now as we make our way into the colder months here in New England (which typically sees an increase in home sales) and begin a new calendar year, many industry professionals have started to offer their insights and predictions for how things will go in 2021.
Here’s a closer look at what some are saying when it comes to real estate.
More People Trade City Properties for Suburban Life
The key draw to homes in the city used to be proximity to workplaces. As more businesses go remote, it leaves the sacrifice of space non-negotiable and many have started to trade in their city properties for homes that are in the suburbs. If they’re going to start spending more time at home, many buyers want extra outdoor property, more privacy, and spacious living quarters.
Higher Price Offers
With so many homes selling, it means there are fewer on the market, thereby increasing demand and driving up prices, especially for desirable neighborhoods and properties. For sellers that also means more room for profits. This phenomenon is fueled by rising confidence from both buyers and builders. Lastly, the desire to commit to properties and build helps to also increase the going rates for homes on the market.
Low Mortgage Rates
For buyers, there is also the bright spot that mortgage rates are at an all-time low. And the good news is that analysts and investors are predicting rates will still be low here in the U.S. into 2021 as the economy begins to recover from the myriad of COVID-19 repercussions.
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