Opinions Wanted: What will the Real Estate Market look like in 2021?

[IceWing_mk1]

So, given that, as of right now, here in the US, the CARES act is going to expire on Jan 1, 2021, all of the foreclosures and evictions which have been on hold are going to move forward.

That means the people who have been not making mortgage \ rent payments for 6-9 months are going to be out of their current domiciles within 2-3 month (takes time for them to get processed through the bureaucratic machine), and those same people are, due to foreclosure (and also the minor fact that there's a good chance they don't have a job, because, you know, if they had one, they likely would have been making their mortgage payments) less likely to be able to buy a new house. They may be able to rent (if they've still got a job), but maybe, maybe not.

Landlords may also be losing their rental properties, because they haven't made a payment in the same timeframe.

Interest Rates are pretty darn low. As a result, people are jacking up the list prices of their homes, because, well, the monthly payments can still be low for the Buyer. This is also being caused because people who would normally be needing to sell their houses due to either moving for job reason aren't, and those who need to sell their homes because they have lost their jobs and if they don't sell them, they'll lose their houses (Right now, they're just sitting there, not making payments. No need to sell.) This results in there being less houses on the market at the current time, which also is driving prices up. (Basic supply and demand).

So, what does everybody think about what's coming up in the next three to six months when it comes to real estate?

 

[Whitestrake Pelinal]

The ongoing exodus of leftist filth from their disease-ridden shitties, coupled with the lust for land trust investment, will prop up prices in the short term. The need for boomer babies to sell their houses so they can ~maintain their independence~ in progressive care communities will exert downward pressure in the long run, but it will take time.

Market instability could, perhaps, overcome the boomer sell-off with sustained upward pressure on real assets as a way to preserve wealth.

 

[LordsFire]

I have no idea, but I'm currently looking for a rental, so it'd be nice if prices dropped a chunk soon.

My guess would be that if there's a significant amount of evictions and foreclosures, prices will drop noticeably because of an excess of supply, but I'm not sufficiently aware of all the factors in play to say that with any confidence. Plus, you know, I want prices to go down, so I'm hardly unbiased.

 

[Bear Ribs]

Personally I agree with this assessment. Property values will drop a bit and the number of people seeking rentals will rise dramatically in the next month. Home entertainment facilities are trending at an all-time high. Previously pools were seen as an expense more than a virtue but now that people have been stuck in their homes too long home pools, gardens, outdoor areas, and play houses are hot commodities. I'm seeing a huge demand for them in my area.

One thing that may prop up the rural housing market is telework. After businesses and people have seen that you can work from home, some are going to continue to do so and once the jump to working on Zoom is made, the next logical step is moving to where housing is cheaper since your job and home location are no longer connected. This isn't going to be super-widespread, I suspect, but it's going to happen to a degree and there's going to be an outflux of urbanites looking for inexpensive rural real estate to a higher degree than previous years.

I've already acquired multiple properties suitable for rental at very low interest rates. I'm of the opinion that there's going to be scads of foreclosures happening soon and people who have lost their houses will need to rent since they're unlikely to be able to quickly obtain new mortgages. I'll lose a serving of principle because property values will go down due to housing values but as I'm fairly handy and decent at repairs my own self, I bought basically wrecks I was able to renovate at a reasonable price so the loss will be minimal and having rentals open to people who need them suddenly should be profitable even with housing markets dropping.

One small cabin of 640 square feet I picked up for a mere $11,000 after an ice storm ripped out it's electrical box, and expect to have it in habitable condition for under $14,000 total which it's going to be hard to lose at no matter what the market does. I've converted it to a 2-bedroom bachelor pad and my current renovation is making it seem roomier by adding built-ins, a built-in bar/table negates a space-eating dining table in the living room and built-in shelving will expand the kitchen, while the bedroom closet is going to become a refrigerator space opening up more kitchen space (the previous owner used the bathroom sink as the kitchen sink and never plumbed the kitchen, which only had a hot plate in it, seriously I've had closets larger than that kitchen!). I hope to be able to pull in 450 a month and keep 400 of that after expenses which will pay for itself in three years, I normally class any purchase that can pay for itself in under 5 as a good long-term investment.

California rather hosed me, however, as their stupid fires caused lumber prices to rise and repairs cost more than anticipated. In particular I wanted to do wood paneling on the ceiling and it suddenly went from a couple dollars to twenty per panel. I've complained to people I know living there and told them to quit having their state be on fire. They're not listening.

 

[Free-Stater 101]

Like realty signs and homes both modest and gaudy being bought and sold.