2020 was a tough time for the property market. People had no money to pay mortgages as many were laid off at their workplace. However, things have started to get better, and the industry is once more promising. Here is why the industry will flourish in 2021.
Sales Will Increase
Experts predict that sales in the property market will increase by 7 percent. At the end of 2020, prices have started to rise rapidly by almost 5 percent. Mortgages will continue to lag in their recovery. However, the new prices are based on the fact that there is an ongoing demand for properties. Besides, the economy is recovering from the pandemic, thus ushering in regular prices. The market is also experiencing low mortgage rates and low supply, thus increasing the costs.
Single-family Home Construction on Demand
The pandemic surged the need for single-family homes. During COVID, large families had to split to avoid the spread of COVID, especially if some members had the virus. As a result, homeowners started looking for single-family homes, but they were unavailable. People had to stay in larger houses than they needed.
Investors are hopeful that the demand for single-family homes will increase. Experts have predicted that the pandemic may stay longer than expected. If this prediction is correct, people have to normalize staying as a single-family, thus increasing the homes’ demand. Besides, the available single-family houses are less than the number of people in need of them.
The industry will flourish as new home buyers enter the market. Many of the millennials will turn 30 years in 2021. Culture dictates that those turning thirty and above should have their homes. A generational shift has always resulted in a booming house purchase.
In 2003, the industry experienced a great demand for property as the “baby busts” turned 30. Throughout history, analysis has used the theory that new buyers enter the market after every 30 years. If this is the case, 2021 to 22025 will be a good year for the property market.
These facts confirm that 2021 will be a flourishing year for the property market. Compensate the losses you incurred during COVID by joining the industry.