Most are talking about a great real estate year ahead. Are they right?
If you browse the news today, the general opinion seems to be that things are just ramping up for an amazing year for real estate growth and appreciation. Maybe they are right. However, being the person pointing out issues and potential pitfalls in the market is the same place I found myself in back before the real estate downturn in 2007.
The media seems pretty convinced on what will happen with real estate in 2021
The headlines are hard to miss. Take a second to google “2021 real estate” and you find headlines like this:
- Sales Are Booming; Estimated to Exceed $160 Billion in 2021
- San Diego home prices expected to rise 8.3% in 2021
- New Mexico’s 2020 real estate boom expected to carry over into 2021
- The U.S. markets that are poised for a post-pandemic boom in 2021
I get the feeling that the popular opinion out there is pretty bullish! The consensus seems to be that 2021 is likely to be a real estate boom year. Are there any reasons to be more concerned about how things will play out in 2021?
In today’s show, we explore some of the concerning elements of the market that we should all be keeping an eye on.
What, me worry?
Unfortunately, I believe that there are plenty of reasons to be more than a little concerned about what 2021 might just mean for the market. For those that can remember, just before the big downturn in 2007, the pundits that were saying we were heading into a real estate market crash, like Peter Schiff, were literally laughed at. Of course, he ended up being proven absolutely correct – but remember all the experts were calling him crazy. Even in my own business, as I was helping people purchase homes, I was warning them against over leveraging their properties or buying too much home.
I find myself experiencing what can only be described as “Real Estate Deja Vu” all over again! Our current real estate market has ridiculously low inventory to thank for this surge. What happens when that goes away? As we have discussed in past shows, what a credit rating actually means as been reduced so that money can be loaned to folks who would normally not qualify. Remember, banks only make money when money is moving and the biggest way to make money move is to loan it out.
We will take the time today to summarize some of the latest news that paints a picture that should leave more of us worried for what will happen in real estate in 2021.
Join me for today’s show where we will chat about all this and a few other tidbits!
Articles Referenced In Today’s Show
- FHFA Extends Relaxed Pandemic Lending Standards
- Americas Slide Into Economic Oblivion
- Biden To Provide 25 Billion in Rental Assistance
- COVID-19 Vaccine Could Increase Inventory
- Exodus Continues as Point 72 Opens West Palm Beach Offices
- Miami Mayor Pushes For Hi-Tech Companies In Silicon Valley To Move In
- Federal Government Moves To Encourage Home Buying
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