The Good News And The Bad New
Experts have some astonishing predictions for 2021 that may herald positive outcomes for first-time home buyers. The bad news is, those who have invested in certain markets are going to be affected by this.
Collaterally, this will result in a spike worldwide for unexpected markets. If you’re in Thailand right now, and you own property, you’re probably in good shape; thousands of Americans are moving there from places like L.A. and N.Y.C. right now. If you’re in L.A. and had some hot property in 2019, you’re probably not a happy camper.
Owing to the economic, political, and cultural shifts over the last twelve months, from March of 2020, the market has been turned upside-down. Savvy investors are at the threshold of substantial opportunity.
Those who bet on things retaining previous patterns are likely in trouble. The best tip for 2021 in regard to forecasts now is to be flexible. With that in mind, consider the following.
Idaho, “Western” States and Florida Are “Hot”
Everybody on the west coast is moving to Idaho, Arizona, Texas, and Nevada right now. From San Diego to Seattle, real estate markets are not doing well. Perhaps San Diego is doing the best of the bunch, but it depends on who you ask. Of the locations where people are moving from the west coast, Idaho is one of the most notable.
Relaxed taxation and laws are attractive to those on the west coast, and even though real estate markets have notably inflated there in the last year or so, said markets still deliver three or four times the “value” in terms of property for a third or a fourth the cost. It’s a no-brainer for many on the west coast.
Meanwhile, Florida markets provide even better deals in an even better location, meaning many from N.Y.C. and cities up the east coast are headed there right now. A lot of Californians have headed in that direction as well. Florida had 21,000,000+ people prior to the pandemic’s economic impact, so it was already a “hot” commodity, literally and figuratively.
So if you’re considering these states or the southeastern “sunshine state” specifically, consider resources like the following as you move to Florida or somewhere that’s substantially different from where you are now. Such market shifts affect the whole country, and collaterally, they have a global impact; so weigh all the data before you commit yourself to anything.
Traditionally “Hot” Cities Are Cold
Traditionally “hot” markets are in notable decline right now. New York City was hit hard in 2020, and many locals don’t think it’s coming back. The same happened to L.A., Portland, San Francisco, Seattle, Chicago, and many other cities where before, markets were trending “up”.
Realty professionals already expected there to be a real estate bubble implosion; when COVID-19 hit, it expedited the process exponentially. This isn’t just something that affects American cities; it’s a global phenomenon. Accordingly, real estate is affected, and savvy investors are both buying and selling with that in mind right now and will do so through 2021.
Inventories Are Fluctuating
This blog was composed on Saint Patrick’s day, 2021. By September 2021, the inventory reality of real estate in America is expected by some to reverse. Presently, real estate inventories are at a historic low. As jobs fail, unemployment comes, interest rates change, and foreclosures transpire, inventories may explode—banks will want to retain their bottom line.
Accordingly, many real estate professionals expect, just as there is a dearth of inventory right now, for there to be an abundance of cheap inventory by year’s end. Accordingly, if you’ve got $100k to invest in property, you might want to sit on it until after Independence day. Then again, you might not. Weigh your options carefully.
Informing Property Investment
Inventories are fluctuating all over the globe, hot and cold markets have shifted polarities, states like Idaho and Florida are prime markets right now. As you go about investing in 2021, keep in mind that the market is experiencing historical volatility, and inform whatever decisions you make with as much data as you can.