What is Likely to Happen Next Year?
Watch this short video to find Alan's predictions for 2021 for the residential real estate market in our area.
Read transcript below:
Hi, I'm Alan Donald with Keller Williams Realty and today I'm going to give you my crystal ball predictions for the residential real estate market in Charleston for 2021.
My first prediction is that home prices in the Charleston area will remain high.
We are at such a low point in inventory that we could double our inventory
and still be in a “seller's market”.
For that reason. I think home prices will remain high in 2021.
My second prediction for 2021 is that mortgage interest rates will remain low.
I say that because I don't think the Federal Reserve has any appetite
to increase interest rates when the economy is just recovering plus the bond market has been highly demanded which will keep bond interest rates down and therefore mortgage interest rates low.
So my second prediction is that mortgage interest rates will remain low for 2021.
My third prediction for 2021 is that demand for Charleston residential real estate will remain high.
I say that for two main reasons:
One, there are a lot of baby boomers who are retiring. About 10,000 baby boomers are retiring per day in the US, and many people are moving from colder areas and bigger cities to warmer areas and smaller cities.
So we have a big demand from baby boomers. In addition, Charleston has become very attractive for high technology companies, we are creating a lot of jobs in this area.
For that reason, I think demand for Charleston real estate will remain high in 2021.
My fourth prediction for Charleston real estate market is that new construction home prices will go up substantially.
That is because the cost of materials has increased enormously
and the cost of labor has also increased.
For those reasons I think that the differential between the price of new homes and the price of pre-owned homes will widen in 2021.
My fifth and last prediction for 2021 is that foreclosures will not have a very big impact on our market in 2021.
I say that because people that went into forbearance will have until the end of the year at least to recover their position and if they lost their job and they can't, their foreclosure process will take at least six to twelve months.
It will take to the end of 2021 for those homes to start hitting the market,
so I don't think foreclosures will have a big effect in 2021 on our residential real estate market.
Okay. So those are my crystal ball predictions for 2021.
Now, that is MY OPINION, please do not take this as investment advice because I'm not an investment advisor.
But I hope this is useful for you.
And if you have any questions, please give me a call, my number is below.
Thank you very much, and until the next one!
More information on our website at www.BuyHomesInCharleston.com. For immediate response contact us at (843) 900-0155!