As 2020 starts to wane, we examine different aspects of today’s market to help us prepare for 2021. Join us as we determine what we can anticipate for the health of the Real Estate market.
What do we currently know?
In order to determine the future of the market, we have to take a look at the events that have surrounded Real Estate up to this point.
Since March, COVID-19 has been a major factor in daily life and business. People have been laid off from jobs, businesses have been forced to shut down or shift into limited service, and the government had to implement the CARES act to assist Americans in distress.
In regards to Real Estate, the market definitely felt a recession of people ready to purchase homes. According to data from the US Census Bureau, privately owned home sales dropped from the 716 homes sold in February to the 612 come March. In April, panic reduced home sales even further to 570.
As we’ve adjusted and adapted to a COVID-19 world, however, confidence has increased. The overall health of the Real Estate Market is fairing much better. Home sales in September are estimated at 959, and October’s numbers aren’t in just yet. The hot nature of the housing market during the past few months can be attributed to lower mortgage rates and lower supply across the United States.
In terms of the average price of homes on the market, Realtor.com shows that homes are up 12% on average. They also show that home sales are faster than both the previous month and the previous year.
What’s to come?
With the fast-paced sales and price increases around the nation, what can we anticipate for the new year?
As with all market highs, eventually, we can expect to see some plateauing of demand. This doesn’t necessarily mean that we’ll see the market falling to the lows we’ve seen in March and April—however, Realtor.com’s housing trend report displays a slowing of demand week over week. The good news is that housing prices didn’t see the same decrease.
In an interview with Housing wire, Doug Duncan with Fannie Mae stated, “Over the course of the rest of the year, the quarterly numbers by which the economy grows, will slow. And by the end of 2021, we would expect to be back, just about where we were at the beginning of 2020.”
In all, experts are optimistic. While nothing is certain, different key statistics are pointing in generally positive directions.
About Bay Mountain Capital:
Bay Mountain Capital has been in business for more than a decade, closing approximately 2,000 loans. We specialize in financing all types of residential and commercial property investments throughout Texas and Georgia. Using common sense and value-added approach, we strive to incorporate these principles into our underwriting and closing processes.
As a direct lender, Bay Mountain Capital can close a loan within one day after receiving a complete file and clear title. The process generally takes two weeks for a residential loan but can be accelerated where circumstances require it.
We are primarily an asset-based lender, which means that qualification requirements are limited. Our rates and fees are among the lowest in the industry.