Will The Housing Market Crash in 2021?
One topic that everyone has been talking about lately is the state of the housing market and if a crash is on the horizon. Obviously, this is a complex question with many factors to consider. Alex goes inside this question with his thoughts on “Will the housing market crash in 2021?” Check out his video below.
Demand is Way Up
Although Covid-19 initially dealt a strong blow to the housing market, it was very short lived. While the first few months of Covid-19 kept most of us cooped up at home, it wasn’t long before people were ready to upgrade their living conditions. Many people began to look at buying homes and moving out of their apartments. This gave families more space to work and learn from home.
Additionally, mortgage rates have remained extremely low. This has allowed many people to buy a home, when they may not have previously been able to afford one. Similarly, homeowners have been taking advantage of lower mortgage rates to buy larger, more expensive homes. As you can see, with so many looking to buy a home, supply has become the issue.
Looking at some key statistics such as “Days on Market,” and the average selling price of a home, we can see some clear trends. Homes in the same counties are selling for significantly more money, and selling even quicker. These factors are what many would assume to point towards a potential crash in the near future.
Not All Bad News
While these factors seem to indicate somewhat of a bubble, we do not believe that a crash is imminent. For starters, home buyers are much more qualified right now than they have been in the past. The low interest rates have allowed more people to buy a home for the first time than in the past. While we may be due for a market correction, we do not think it will be severe enough to qualify as a “crash.”
There are some things you can do to help safeguard against any decline in housing values in the near future. First of all, if you are considering selling your Philadelphia or New Jersey home, it is a great time to take advantage of the current housing prices. You can call us at 215-770-3122 or contact us to get a fair cash offer for your house.
Another tip is to be realistic about your home’s value if you do plan on selling soon. When housing prices do correct, there will undoubtedly be people that lose significant amounts of money. If you are fixing up a home to sell, such as a flip, then you also need to be realistic with how much you will sell for. If the housing market suddenly enters a correction, you don’t want to be stuck not able to sell your home because you tried to hold out for a specific amount.