“There’s no management without measurement.” This axiom applies to more than just business. Real estate professionals as well as rank-and-file buyers and sellers rely on past metrics to determine future actions. 2021 has most certainly presented unprecedented challenges as well as opportunities as the data reflects. So it has us anticipating where real estate is headed in 2021.
The California Association of Realtors issues a monthly recap of market activity that shows continued growth. Highlights from CAR’s January 2021 reports show:
Great news for January! Unfortunately, CAR and other sources’ data do not reflect real-time activity and usually trail current activity 30 – 60 days. Mortgage interest rates, on the other hand, can be measured daily. Record-low mortgage rates sparked tremendous sales activity in 2020, but February brought the first significant, incremental rise in interest rates since the beginning of the Pandemic. 30-year fixed-rate conforming loans rates approached 3%, causing real estate agents and consumers concern that activity could significantly slow down. With the introduction of rising rates into the mix, which direction will the market take for the next few months?
While we have no crystal ball to predict the future, we can still look both backward and forward to find reassurance that we’ll see continued growth in the months to come.
The most effective way of developing an action plan remains analysis of past performance, especially in real estate. But while the numbers may yield significant insight into the future, never discount the impact of current conditions. Today home buyers and sellers have more reasons than ever to jump into the market, and real estate professionals should continue to find more ways to satisfy the demands of a hungry market. CENTURY 21 Peak is monitoring both real estate and financial markets for information to make the best recommendations to buyers and sellers.