With the desire to relocate to less densely populated areas of your own city or country, the desire for real estate should continue to be quite strong. Everything from cars, to services, to travel, to nicer homes will be in huge demand. This is largely due to a sharp increase in listings, as sellers begin to outnumber buyers within the city. There is also little-to-no inflation with so many people out of work. The median price of an existing home sold in October was about $320,000, up an incredible 7.4% compared to a year ago. Just like how a massive increase in the personal saving rate may be throttling housing demand, eventually, the savings will be unleashed onto the world. ... Seattle-Tacoma-Bellevue, Wash. 8.9%. There should be easing of PPP forgiveness rules, and large government works initiatives to put Americans back to work. I guess the key is to win the listing. 62 elementary schools. If you’d like to keep in touch, you can sign up for my private and free Financial Samurai newsletter here. Jessica Barry • Coldwell Banker Bain Modern Den Real Estate + Dev, Tamera Camp • John L. Scott, Inc. Tacoma Housing Market Forecast and Real Estate Price Prediction:, Tacoma City Real Estate and Home Value Predictons for 2021 Therefore, you might as well play along instead of fight the government. Get free refinance or purchase quotes in minutes. Best of luck with your real estate investing! Below is an example of a CrowdStreet offering in the self-storage space. Further, by living in your same city, you won’t have to take a salary cut. Before we get in more detail about my housing market predictions for 2021, let’s first go through the negatives that could drag the overall housing market down. And corporate earnings are rebounding. The only housing markets more competitive than Tacoma are in the San Francisco Bay Area, according to Redfin. Buy real estate in less centrally located areas that is less dense, has lower prices, and still great attributes like an ocean view. It makes sense with all that’s going on that the housing market shifts often this year. Homes in Tacoma receive 5 offers on average and sell in around 6 days. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Tacoma, Washington is 87% during this period. Mortgage rates are likely going to stay at record-lows. However, the personal savings rate has gradually declined over time as Americans have become more comfortable with the future. If housing prices decline by up to 5% over the next 12 months and mortgage rates continue to remain low, housing affordability goes up. Realtor.com’s top 10 housing markets for 2021 have substantial momentum from 2020 which they will carry into next year. What started off … It’s easy to understand, less volatile, provides shelter, and produces income. Notice the continued upward trend in all of 2020. Take advantage of real estate platforms such as CrowdStreet to diversify your investments across America. I believe there will be a permanent desire for employees to work from home 2-3 days a week and companies will allow it to retain employees. Meaning, general housing market predictions are that housing prices will fall through the end of 2020 before recovering in Q3 of 2021. "The 2021 housing market will be much more 'normal' than the wild swings we saw in 2020. ... Realtor.com ® 2021 Housing Market Forecast. CrowdStreet is focused on sourcing attractive multifamily properties for investors to take advantage of the boom. Realtor.com predicted that home values within the Seattle-Tacoma-Bellevue metropolitan area would rise by 9.7% during 2021. Notice how online spending (card not present) really surged higher in late October during the Amazon Prime period. Jobs are slowly coming back as the economy slowly opens up too. Given the demand for U.S. treasury bonds is high in a uncertain environment, bond yields will remain low. Below you'll find statistics on residential listings in Pierce County and surrounding communities, updated every day from the MLS, including the average price, average days on market, average price reduction, average price of homes by bedroom, and more. According to various sources, housing values in Tacoma rose by more than 7.1% during the past 12 months. Below you'll find statistics on residential listings in Kitsap County, updated every day from the NWMLS, including the average price, average days on market, average price reduction, average price of homes by bedroom, and more. Best article I have read recently in the topic. This second round of stimulus will hold millions Americans through until there is herd immunity. The government has committed to doing everything it can to help the American public stay afloat during a global pandemic. I feel strongly about my housing market predictions for 2021. Cash is KING... even with strong buyers - waiving inspection per pre inspection, There were 15 offers per listing agent. In such a scenario, my housing price prediction for 2021 will prove to be conservative. Leverage is great on the way up, but dangerous on the way down. Looking at homes virtually is nice. When there is uncertainty, most people tend to just hoard cash until all signs are clear. However, as always, there are no guarantees with any investment. The housing data provider’s May Home Price Index and HPI Forecast report predicts a year-over-year home price decrease of 6.6% by May 2021. Don't subscribe They all say that getting a jumbo or super jumbo loan poses more difficulty. Upgrading to a nicer home with more space and an ideal layout is priority #1. Realtor.com's latest housing market forecast for 2021 shows that the housing boom will continue but the seasonal trends will normalize. I’m personally buying as much ocean-view property on the western side of San Francisco as possible because I think it is undervalued. Record-low mortgage interest rates are enabling homebuyers to afford more home. Below shows the massive spike in the U.S. personal savings rate in April 2020 to 33%. The accuracy of the Tacoma housing market trend prediction is 87%. You can also subscribe without commenting. Published: 10/03/2020 | Updated: 12/29/2020 by Financial Samurai 12 Comments. Here are my housing predictions for 2021. CrowdStreet is an easy way to invest in real estate without the need to get a mortgage and leverage up. Homes in Tacoma are pending sale within 23 days. We also desire to invest in a more stable physical asset that generates strong cash flow. The existing home sales will increase by 7 percent in the year 2021. Interest in commercial real estate where fewer humans are involved seems to be quite high for obvious reasons. Thankfully, millions of Americans received enhanced unemployment benefits of $600/week until July 31, 2020. The demand for homes this year is extraordinary as record-breaking numbers of hopeful buyers continue to shop for homes. Competitive! However, after a massive 44% month-over-month rebound in U.S. pending home sales in May and another strong 9.6% rebound in September, the U.S. housing market is stronger than ever! All They’re looking to protect what they have. Love the article, Kentucky is KY not KT fyi. I was able to get pre-approved for a 7/1 ARM jumbo at only 2.125%! Therefore, there will be a large demand curve shift with renters looking to finally buy a nicer place to live. CoreLogic now anticipates that home prices fell 0.1 percent in June and forecasts the decline to reach 6.6 percent by May 2021. Do you really want to live like a pauper for the next several years? Given the west side is mostly zoned for single family homes, the area is less dense as well. This map shows why investing in the heartland of America is likely a strategically sound move. It’s free to sign up and explore. Fundrise is free to sign up and explore. On the other hand, if there is a Blue sweep, the nation should expect massive government stimulus in 2021. Required fields are marked *. There’s never going to be a federal tax or federal stimulus package based on various cost of living levels by state. Below is the latest Chase consumer credit card spend that shows a continued rebound. All that wealth could be shifted to real estate. He enjoys being a stay-at-home dad to his two young children. Per agent it went for around 100k over asking. Am I missing something? Tacoma becomes hottest housing market in U.S. as 'fed up' Seattle buyers move south A new Redfin study found Tacoma is the hottest housing market in … Maybe. Below is a map highlighting where the enhanced $600/week unemployment benefits go farthest. Look how much wealth has been created in the stock market so far in 2020. You can’t really count out the US consumer and all this pent-up demand for homes is really going to boil over and explore once the lockdowns are over at once open houses are open. Millions of people are itching to spend more and improve the quality of their lives. However, banks are further tightening lending standards because they also are unsure when the economy will recover. Over the long run, real estate tends to do well over time. But it’s also amazing how strong the May US pending home sales rebounded. Some companies have explicitly said that if you want to relocate to save on living costs, you will also have to accept a salary cut. The Tacoma housing market is most competitive. Zillow is one of the largest online real estate companies with a wealth of data. As of November 20, 2020, the U.S. housing market is incredibly strong. Since 2016, I’ve personally invested $810,000 in real estate crowdfunding to invest in lower-cost areas of the country with higher rental yields. The Seattle Metro looks to a 9.7 % increase in prices in 2021. getty. For big cities like New York City and San Francisco, I believe there will be a V-shaped recovery in demand in 2021 as hundreds of thousands flock back to big city living again. So we thought it would be helpful to publish a real estate market update for those who are planning to buy a home in Tacoma, Washington in 2020. Wow thanks for such an insightful and detailed post! The sweat spot for real estate is when stocks are down ~10%, as is currently the case. However, 2020 is anything but a normal year, and the housing market is no exception. What’s great about CrowdStreet is that they are focused on 18-hour cities, secondary markets that have lower valuations and potentially higher growth rates. Everybody should at least refinance their mortgage now to save. Any time you use something for a longer period of time, you care more about that thing. The Tacoma real estate market has changed dramatically over the last few years. Without emotional buying, properties have a harder time getting into a bidding war. These 13 housing crash factors will shape the housing market. For example, you are seeing New Yorkers buy property in Connecticut and Florida. Now that tens of millions of people have experienced working from home for months, the trend is likely to continue forever. I’ve been watching the real estate market closely this year especially in the last several months. Here are the reasons. Below is their housing market predictions for 2021. — some errands can be accomplished on foot. Sam, I came to similar conclusions in my blog post but with a narrower focus of the San Francisco Bay Area property market. Multifamily properties and other commercial real estate have lagged the stock market and single family home prices so far. The pace of price increases will likely slow down, as demand from the fist half of 2020 gets exhausted. Great article. Keep up the good work. In a normal year, the peak homebuying season comes to a close by early fall. However, due to the following reasons below, I believe U.S. national median home prices will likely continue to reach new highs. Market Statistics. The Federal Reserve and the Federal Government are being accommodative. "The CoreLogic Home Price Index registered a 4.3% annual rise in prices through June, which supported an increase in home equity," Frank Nothaft, chief economist, said in a press release. This is their base case scenario. Here are three real estate buying strategies to consider based on my housing market predictions for 2021. Tacoma Housing Market and Real Estate Price Forecast, Short-Term Property Price Prognosis for Next Months and Year Short-term real estate market and home value forecast is based on last 5 years median home prices. Real estate is hot and the pent up demand is nuts. This is good news for real estate investors looking to buy a rental property in a strong housing market. If you look at many other demand charts for 2H2020, you are seeing a V-shaped recovery. Related: Real Estate Outperformance Examples During The Pandemic. No one has a crystal ball … Therefore, smart investors are buying up rental properties as well. Your email address will not be published. Millions more people are deciding whether it’s best to keep hoarding cash or actually spend their cash on a better lifestyle. Further, the value of rental income has gone way up because interest rates have come way down. a minimal amount of infrastructure for biking. My husband and I are real estate agents and the hardest part of our jobs is having our clients compete with up to 30 other buyers in Marin County. Here is a short and crisp Seattle housing market forecast for the 3 years ending with the 3rd Quarter of 2021. My housing market prediction for 2021 is that nationwide housing prices will continue to reach new all-time highs. The economy is rebounding. Given my housing market prediction, if you’re looking to buy a home and can afford to do so using my 30/30/3 home buying rule, buying property before we reach herd immunity is probably going to turn out well. Zillow’s base case scenario is that home prices will fall by 2%-3% in 2020 and get back to all-time highs sometime in mid-2021. Short-Term Outlook Based On The Last 12 Months. The winter of 2020/2021 will likely be slow given a surge in coronavirus cases as well. A higher delinquency rate makes banks more hesitant to lend as losses mount. Below is a picture of my home office, located on the western side of San Francisco. Another favorite real estate crowdfunding platform is Fundrise. Although we are living in difficult times now, we should also look to take advantage of any weaknesses in the housing market. "In our latest forecast, national home price growth will slow to 0.6% in July 2021 … 2) For more stable investment returns and potential outperformance of volatile stocks, take a look at Fundrise, a top real estate crowdfunding platform for non-accredited investors. October 23, 2019 ♦ real estate ♦ 0 Comments. This is according to the housing analysts and researchers at Realtor.com. Just make sure you live/own your own for at least 5 years, if not 10+ years. With the possibility of a sharp decline in Canada’s housing market, you might want to avoid investing in a stock like Home Capital Group to keep your capital safe. Better Real Estate, LLC, Tammie Smith • Better Properties UP/Fircrest Keller Williams Realty PS, Aleksandr Frankov • KW Mountains to Sound Realty Sound Realty Group Inc, Mark Falk • Better Properties N. Proctor RE/MAX Exclusive, Marianna Mikshanskiy • Sterling Johnston Real Estate, Travis Robinson • Crescent Realty CENTURY 21 Real Estate Center. Notice how $600 is worth between $645 – $700 in states such as ND, SD, NE, KS, OK, MI, AK, MO, IN, AL, OH, KT, and WV. Courtesy of Zillow.com. As a result, productivity also increases. Credible is a top mortgage marketplace where qualified lenders compete for your business. We are seeing the saving rate go down as Americans spend more money. This is the Yin / Yang of finance. I expect this trend to continue for decades. Notice how $600 is worth between $645 – $700 in states such as ND, SD, NE, KS, OK, MI, AK, MO, IN, AL, OH, KY, and WV. My prediction is for a $330,000 median price by end of 2021. We could potentially see a 10% YoY in housing price growth in 2021, especially after slow price growth in 2019 and the first half of 2020. The Tacoma housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. Sign up for the private Financial Samurai newsletter! Real estate is my favorite asset class so thanks for sharing so many insights on the housing market! The income earned is also 100% passive. One house we were going to see with our clients went into contact in 1 day, $400,000 over asking, all cash, no contingencies.

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