We are nearly three weeks away from ringing in a New Year so let's jump right into it. Indicators provide insight to the future, and right now we are confronted with several touch-points that are important to note as we anticipate what might happen in 2021:
1. Ultra-low interest rates. They are historically low. They are also fueling rising prices. Seldom, if ever, has there been a weak real estate market in a low interest rate environment.
2. Limited Inventory. Many areas around the US are experiencing shortages of several types of properties, especially more affordable entry-level homes. More buyers than sellers usually fuels a strong market but can influence volume.
3. High Demand. The demand to buy a new home continues to escalate, fueled further by accelerated plans and 72M millennials coming of age to buy.
4. Under-building. The US is under-constructing homes by millions.
5. COVID Vaccines. They are here and distribution is about to start. Millions will be vaccinated every month. There is now a clear path to significant relief and an end to the pandemic.
6. Stimulus Money. Trillions of dollars are already circulating globally and more is coming to further fuel the economy.
7. Elections. By the time the run-offs are complete in January, we will have a better understanding of future direction in the Federal Government. Certainty has value.
8. Bonus Season. Yes, many people will be getting bonuses this year especially in the financial and technology markets where some companies have boomed. This capital will fuel real estate markets.
9. Record Equity Markets. Not only do they make people richer, they make them feel richer. Moods often drive markets as much as money.
10. The optimism of Spring. Spring markets are often strong markets around the country. They fuel optimism, hope and renewal.
Add in warm weather, high quality of life and stunning beaches, it's hard to imagine the Palm Beach County real estate market slowing down any time soon.
Are you or someone you know planning on making a move in 2021? Contact us
to start the conversation!