Here is my analysis on the 2021 Real Estate Market, what will happen to housing prices, and whether or not it’s a good time to buy or invest in a home – Enjoy! Add me on Instagram: GPStephan
LIMITED TIME: Get 4 FREE STOCKS ON WEBULL when you deposit $100 (Valued up to $1600): https://act.webull.com/k/Vowbik9Tm5he/main
JOIN THE WEEKLY MENTORSHIP – https://the-real-estate-agent-academy.teachable.com/p/graham-stephan-mentorship-program/
THE NEW PODCAST: https://www.youtube.com/channel/UCMSYZVlQmyG8_2MkIKzg0kw
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
My ENTIRE Camera and Recording Equipment:
What will happen to the real estate market in 2021?
This article from the National Association of Realtors, who launched a survey among 20 top US economic and housing experts, predicted that housing would see an increase of 8% in 2021.
THE CONTRIBUTORS FOR THIS:
Right now, lack of inventory is a big issue. It’s recently recorded that the number of homes currently listed for sale on the market is at its lowest level EVER RECORDED, going back NEARLY 40 YEARS
Second, we’re seeing incredibly low interest rates.
Rates have NOW dropped below 2.7% on a standard 30 year fixed rate mortgage…which is UNREAL.. and just for reference, last year, mortgage rates were about 3.7%…which is nearly 40% HIGHER than what we’re seeing today.
That also means – BECAUSE OF THAT – home buying demand has increased…and increased…and increased…to a BRAND NEW RECORD HIGH. A survey found that more than HALF of buyers felt like it was a good time to buy because of insanely low mortgage interest rates, so it’s no surprise that’s driving a BIG push for people to lock in a low rate while they still can.
HOWEVER…Not EVERYONE is so optimistic.
The economist, Michael Strain, mentions that, as of recently, 10% of the 8-million single family mortgages backed by the Federal Housing Administration were delinquent by more than three months….along with “These delinquencies are heavily concentrated among loans associated with low credit scores.”
He then says that this is cause for concern, because the ONLY REASON we’re NOT seeing a “Wave of foreclosures” is because of a provision in the cares act that temporarily freezes foreclosures until 2021.
Well, through September of 2018…the rate of seriously diligent loans was about 3.7%…and, at any given point in time, historically, 8-9% of FHA are behind on their payments by 30 days or more…so, YES, FHA loans more than 90 days late ARE more than DOUBLE what they were just 2 years ago…but, given that – most of the time, almost 4% are consistently more than 90 days late..it’s not AS BAD as we expected.
The data company Black Knight found that 2.75 million mortgages, or 5.2% of all residential properties with a mortgage, were in active forbearance as of Dec. 8.
But, here’s a more broad perspective when it comes to this:
There are 138 million total housing units in the United States – this includes single family, condos, multi-family, and apartment buildings…and of those, 40% are completely owned outright with no mortgage.
Then – of those properties with a mortgage, which is estimated to be approximately 50 million properties…the mortgage bankers association found that that 5.83% are in a forbearance plan, which they say impacts 2.9 million households.
In order for a home to be foreclosed, it needs to be taken over by the bank – and the seller must GENERALLY owe more on the home than what it’s worth, otherwise – the seller would just sell the home on the market to avoid foreclosure. Well, the data company CoreLogic found that only 3% of all mortgaged properties are underwater, which is an ALL TIME LOW.
So, if we assume that ALL 3% of those underwater homes go into foreclosure from those 5.83% of loans in forbearance…that means only 0.1749% of mortgaged properties would be foreclosed on…or, 96,000 total homes.
So, OVERALL…based on the numbers and evidence presented to us…no, a wave of foreclosures is HIGHLY UNLIKELY of ever happening that would “Crash” the real estate market.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
Learning About Keyword Research
This Write-up has to do with discovering Search phrases as well as Keyword research study. Sorts of Search phrases, its importance. Actions to comply with as well as Devices utilized for Key phrase StudyHow To Fix Bad Reviews Online
Handling bad reviews can be irritating. Yet try to position your emphasis mostly on the good evaluations that you receive, as well as there will certainly be lots of once you begin requesting more.This Job Profile Is Too Boring Said No Digital Marketing Professional Ever
Bigger budget plans, raised pay as well as more occupation choices are several of the main advantages of electronic advertising and marketing. Digital advertising is an occupation that has plenty of doors open for creative and company people.How to Create Your Ideal Customer Avatar
It is really crucial to recognize who your Suitable Client Avatar is. The far better you recognize your perfect consumer character, the better you will be able to compose content that they will react also. A really familiar stating that is “if you attempt and sell to everybody you will certainly market to no one.” It is extremely crucial to understand your Perfect Client Character so that you can recognize more info about them and also for that reason you will certainly have the ability to address their concerns better.Start A Business Around Your Interests
If you have ever before started a company online only also discover that there is a hill to climb as much as discovering and technological jargon is concerned. You might also have actually ended up being totally overwhelmed as well as consequently wearied to Beginning A Business Around Your Rate of interests and never ever began gaining any money or extremely little money. Well if that is the case I wish to tell you that you are not alone which I had the exact very same experience when I tried to Start A Service Around My Interests as well as this is even more factor I would certainly love to present you to my business advisor.