Hi everyone, my name is Joe Costantino. I am the owner of Costantino Realty group and I want to welcome you to Smart Moves where I provide you with simple answers to your real estate questions.
The question this week is very appropriate given that we have entered a new year. The question is:
What is the outlook for the residential real estate market in 2021?
Here’s are the three factors that I believe are going to drive the market higher in 2021 allowing homes to continue to appreciate on the south shore:
- Low inventory
- Low interest rates
- And high buyer demand
So, lets talk about each factor.
First, it is a seller’s market. This means that there are more buyers than sellers or there aren’t enough homes to go around for the number of people wanting to buy. This low-inventory situation has existed for some time now, but is even more pronounced today which will allow prices to continue to appreciate.
Secondly, the interest rates continue to be at historical lows, and I believe rates will remain in a very narrow range throughout 2021. Lower rates allow buyers to purchase higher priced homes which again will push home prices higher.
Finally, there is high buyer demand. The competition that exists between buyers is fierce with in many cases multiple offers being submitted on the same property. This will push prices of homes higher.
In summary, it is a great time to sell a home on the South Shore. It also a great time to buy a home because of the incredibly low interest rates. But if you’re buying a home you have to be positioned properly and move fast before someone beats you to the punch and the home goes under agreement.
Send in your questions to info@costantinorealty.com.
Thanks for listening.