The housing market tends to be very incalculable year by year. With so much transpiring in 2020, it takes experts like Shalom Lamm to diagnose what trends will end or continue next year. The economy was in a colossal recession when millions of Americans lost their jobs due to COVID-19. However, while many were out of work, the housing market wasn’t completely doomed.
Shalom Lamm states that the only reason the housing market was still prosperous was that COVID-19 forced families out of cities. With highly populated areas, many did not want to remain near such high exposure. So, most people did their best to move out of cities to more rural areas. On his Personal Blog, Shalom Lamm demonstrates how important market trends are to contemplate and follow throughout the year.
If people were keeping an eye on what was happening with the virus more thoroughly, the market may not have been so highly affected by the changes in the economy. Although the road to a convalesce economy is long, the real estate market is consistently selling homes. With more sales, come more developments, which will additionally help boost the economy.
Due to the impact, COVID-19 had on homes, many sellers had to drop their prices to close on a deal. For months, homes were selling at reduced rates of thousands of dollars. Lamm believes that there was no better time to buy or invest in a home. However, according to statistics from August 2020, the median price of a home has gone up almost ten percent. So, for realtors commission will finally be back to what they were used to for so many years.
Lamm predicts that prices will rise for the rest of the year and then fall mid-2021. However, he insists that his opinion is only based on the economy and, of course, can not predict any future pandemics. He insists that the south will have a much higher medium price compared to the last three years. With everyone moving to southern states, the housing market will reflect that and some relations may try to stretch bids for higher prices.
This is advantageous to the governments in the south since they will be allocating for more people living there. More people means more taxes and so forth. Cities on the other hand will have a hard time in 2021. Apartments in New York City that are listed for millions of dollars will not have as much value as they once did. Yes, having no elevator and living on the seventh floor of a brick apartment might have been very on-trend for decades, but not as much in 2021. Lamm understands that people are putting their safety first by moving to rural areas. According to Ambit Success, Lam also insults that investors are purchasing an abundance of land to develop communities out of cities.
The only long term problem with people moving out of cities in the overall increase of homes on the market. If someone is spending one million dollars on an apartment in New York City, they could find a house, ten times the size, in Virginia. That being said, some realtors might try to increase the home’s value in Virginia just because they know city folk will pay for it. Lamm believes this is all theoretical and hopes it doesn’t become a reality in 2021.