The Real Estate Year in Review: Cool Cribs and Cool Cash
Key Insights
- Despite the demented year we’ve had, the real estate market was hotter than a stove on max.
- Mortgage rates hit rock-bottom more times than a clumsy belaying rookie.
- Pandemic pushed people in droves to the ‘burbs for a real estate renaissance.
- Deus Ex Machina or rather Devo Ex Machina. Yep, technology had a leading role in virtual home tours and e-closings.
- Office spaces took a giant snooze while millennials demanded more desk space at home.
- Sustainability and eco-friendliness are not just buzzwords anymore but a loud call from Mother Nature to get our acts right in real estate.
The Real Estate Market: More Bounce than Tigger!
- Urban exodus was a new ‘trendy’ term, with people leaving cities more often than they updated their Facebook status.
- Low inventory high demand: Sellers transformed into smug cats while buyers’ hope was thinner than gluten-free bread.
- The existing home sales surged- the best since 2006. Giving us all a reminder of pre-recession times.
Looking Forward: 2021
- Home prices are expected to rise, but at less of a Usain-Bolt sprint and more of a grandma jog pace.
- Mortgage rates are anticipated to gently rise from their ‘deeper than Mariana Trench’ levels.
- Remote work culture has people making eyes at larger homes in greener pastures. A trend we might just see going strong.
The Property Investment Space: Where Dough Grows on Trees!
- Rental properties were a jackpot for owners as demand surged like GOT fans seeking the next obsession.
- Home flipping became less of a gamble, more of a strategy as capitalizing on the market became everyone’s favorite bedtime story.
- Commercial real estate took a hit but warehouses and industrial properties are standing tall, proudly flexing their ‘in-demand’ muscles.
Here is my hot take: 2020 made real estate do the macarena, the twerk, and the Texas two-step all at once. It made city slickers channel their inner Carrie Bradshaw to question the urban life, swapping stilettos for wellies. It made sellers into smug Cheshire cats and buyers into nervous twitchers. But, even in the topsy-turvy times, the cardinal rule persisted: Location, location, location. The ‘burbs became the new black, outshining city life. But as we step into 2021, I say, hold onto your seat belts, folks. If anything this past year has taught us, it’s that predictability and real estate go together about as well as toothpaste and orange juice. We’re not popping any prophecy Champagne yet, but predicting a year of moderation and settling dust. Now go ahead, put your feet up, pull that blanket on, sip your hot cocoa and fend off the cold while we gear up to mug the uncertainty of 2021. Bright times or stormy nights, we’ll have the hot-takes coming. Remember, it’s all about the ride!
Original article: https://www.inman.com/2023/12/01/24-affirmations-lessons-and-contemplations-for-2024/
