2020 was a year not so many people were happy about because of the pandemic. This affected many sectors, including real estate.
For instance, people were more concerned about saving their lives and loved ones than checking out a home. This dropped sales and investment for the year and has dragged on since.
Now that the world is beginning to get the hang of the virus, things are beginning to change across all sectors. For the real estate sector, many people are eager to know what 2021 holds for it.
This is why real estate entrepreneur Winston Deloney has been invited to speak about investing predictions in 2021.
Tell us about your love for real estate and investment.
I often get asked about my love for real estate, that I fear I might one day fail to find words that adequately express it. My life is built around real estate investment, and I always encourage people to dive into the sector.
Though sometimes it can be volatile, with the right knowledge you will know how to salvage bad situations. This is one reason I maintain a blog where I explore the art of real estate investing. My blog is a great resource for anyone looking to go into real estate or just seeking robust knowledge.
2020 was not a year that many people were happy about. Do you think the pandemic of last year affected real estate?
If you look around, I doubt you can point to any sector that was not affected by the pandemic that engulfed the world. Of course, the real estate was affected. Sales drop drastically, and investors couldn’t commit funds to the sector since it was rather too volatile to do so.
Are these effects recoverable, or has the real estate recovered from it?
Like before, real estate will always bounce back. I believe that despite the negative effects of the pandemic on real estate, there are still many prospects to expect. So, I believe that these effects are not something that real estate cannot recover from.
What are the investing predictions for real estate in 2021?
There are some predictions for the real estate sector for 2021, especially regarding investment. After considering some available information, these are my predictions.
- In 2021, the real estate mortgage rate may remain around 3%. This is due to slow economic growth and the growing trade war between China and the USA.
Since Covid-19 has not been defeated, there might be less expectation about the growth of mortgage rates beyond 3%.
- The retail sector may continue to suffer a decline. However, the medical sector will be the hot Commercial Real Estate (CRE) in property, while the industrial sector will follow.
The basis of this is the shift the pandemic gave to the ways things are being done. For instance, there’s a greater focus on health and building more health facilities. In the same way, there is a de-escalation of the need for physical offices due to remote jobs.
- Housing prices will likely stay high in 2021 due to the boom in residential construction. It can be relatively seen in the Chicago real estate scene.
Do you envisage any changes that could affect these predictions positively or otherwise?
These predictions are what they are—guess works based on available evidence. If nothing changes these, then there are likely not going to be changes in the predictions.
Depending on the kind of change that happens, the effect might be positive or negative. But then, I will say let us keep our fingers crossed and be hopeful for the best.
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