The housing market saw a great year in 2020, despite the global pandemic. We saw home sales reach the highest level since 2006. Fiduciary financial planner Mike Reeves of Strategic Wealth Designers joined the newscast to discuss the current state of the housing market. 2021 won’t show a buyer’s market quite yet.
“2020 was most definitely a seller’s market,” Reeves says. “But, we aren’t going to see that turn around quite yet. We can expect prices to rise at a slower pace in 2021 than they did in 2020. There is still a large demand for homes. There are fewer homes on the market and builders cannot keep up with demand. Mortgage rates are still historically low which will continue to propel buyers.”
Some of the most competitive markets will be Austin, Nashville, Tampa, and Denver. Markets that we will likely see underperformance in 2021 will be New York, San Francisco, and Los Angeles. The pandemic has pushed people from these usually popular cities and encouraged them to look at new markets.
“More millennials are in their 30s and interested in buying homes,” Reeves says. “This is another factor playing into the increased demand. People are also able to relocate more easily with the increased ability to work from home. With all of these factors combined, the housing market is poised to remain strong for months if not years to come.”
As interest rates creep back up, the market has moved the dial back from on fire to just hot but for buyers looking to score a deal, 2021 likely isn’t going to be the time. To see additional stories surrounding business and economic news for the Indianapolis area, visit https://CBS4Indy.com/Strategic-Wealth and if you have a question for Mike send an email to email@example.com.