Friday, January 15, 2021
New consturction is playing a significant role in the real estate market for 2021. The shortage of resale homes is partially offset by a robust building boom led by 500 single family home building permits issued in 2020. Builders however are not really hitting that entry level price point much. about a 100 townhome permits were issued last year and those tend to tickle the bottom 300s but resale homes in the $300-350k range are definately super hot right now. With rates remaining very low and a likely COVID 19/New Administration economic slowdown, there is another potential opportunity for selelrs int he entry level market to sell at top dollar and perhaps buy a step up house at a less agressive price point as things settle in for the mid 2021 season. Generally the entry level has the longest lifespan of growth as there is nearly always demand at the low end. Mid level and high end homes tend to fall off first. This creates opportunity for the move up buyer. 2021 could be a banner year for the 3 bed 2 bath 1500 SF seller to exchange for a 5 bed 3 bath 2500 SF mid size move. Retiring baby boomers are bidding those smaller ranch homes up through the rood so younger people that are less sensitive to stairs can buy a 2 story hosue without competeing against the retirees and their big cash offers. I am looking forward to a solid real estate year but long term 2022 and beyond is a bit cloudy at the moment.