If you’ve been even remotely involved in the real estate industry throughout the last two years you know just what a madhouse the market has been. With spiking prices, record lows in inventory, repair supply shortages, and the “urban flight” taking hold of every scale of house development, reading the future has felt like a challenge when planning your next move in the industry. What’s happening now? What can we expect for the next 12 months? Let’s take a look at the current state of the US housing market.

As we traversed the rapidly-changing environment of the market during COVID-19 we saw all sorts of records – most notably were: 

  • record low mortgage rates
  • record low total housing inventory 

While housing  inventory continues to be near record lows, we are seeing a small slow down in the turnover of new homes on the market. This is likely caused by the regular annual slow down towards the end of summer, but experts don’t expect the price dip that we typically see come autumn and winter. While the total amount of new buyers has steadily decreased, we are still seeing more new buyers looking than houses on the market.


Urban Flight Means New Real Estate Opportunities

While small markets across the country saw rapid price increases because of the “urban flight” caused by population density concerns across the country in the face of COVID-19, those urban markets remained largely stagnant during the past year or so. Looking forward, those markets are anticipated to heat up quickly. Daren Herzberg, a licensed associate real estate broker and co-founder of The Babst + Herzberg Team at Compass in New York, has reported record deals on condos and properties across the greater New York City area. Combined with pedestrian and bike-friendly changes made across many major cities, urban revitalization comparable to the “Roaring 20’s” is said to be on the way in major metros across the country.


COVID-19 Meant Big Hurdles for Real Estate Investors


One of the biggest hurdles for real estate investors throughout the span of the COVID-19 crisis was the federal ban on envictions which left banks unable to foreclose on properties whose mortgages were not being paid on time. The ban on foreclosures has been lifted on the federal level, meaning that banks can now begin foreclosure proceedings on properties which have been abandoned or are otherwise behind on payments. This means that a steady flow of foreclosed properties will be re-entering the market for potential investors to fix up and resell. Because the housing inventory is still so low, resold properties will continue to fetch high rates of return – especially when coupled with the cost of supplies largely returning to normal.

While the housing market may become more regular throughout the end of 2021 and into 2022, experts are still predicting hot, seller-friendly markets across the country. With mortgage prices steadily rising into the 3.5% range through the fall, buyers will be looking to capture rates which are still significantly lower than previous years. Being ambitious in your investing strategies will pay off – investors should stay confident!

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