This month, we cover long-term trends in the United States, considering the ways in which history can inform our future. We also compare the 2020 and 2019 calendar years in our local area, using 2019 as a “normal” year to reflect upon 2020 trends.
We don’t want to jinx anything, but we may have turned the corner on the pandemic. New cases are declining after peaking in early January, and the United States is administering over 1 million vaccinations a day. Whether we are on the back side or not, COVID-19 will have lasting effects on how we live and work. In particular, the pandemic has substantially raised housing demand. Working from home, or at least working in non-office settings, is here to stay, and all-time-low mortgage rates have incentivized renters to enter the housing market because the cost of buying may be lower than renting. For these reasons, we suspect that demand will continue to remain high through 2021.
As we navigate an ever-changing economic landscape, we remain committed to providing you with the most up-to-date market information so you feel supported and informed in your buying and selling decisions.
In this month’s newsletter, we cover the following:
- Key Topics and Trends in February: We are entering 2021 with a low supply of houses and unseasonably high demand for the winter months. Mortgage rates are likely to remain at their current historic lows through 2021, making rising home prices more affordable and causing more buyers to enter the market. The homeownership rate is at a 10-year high.
- February Housing Market Updates: Single-family homes are massively undersupplied relative to demand, contributing to further price appreciation. Condo prices remain stable, and inventory has begun to decline.