Monday Morning Coffee - 2021 Housing Forecasts
2021 Housing Forecasts
Hi, it's Buddy Blake here from Wilmington, North Carolina, and it's Monday, so it's Monday morning coffee. I want to let you know that the 2021 housing forecasts are out and all the big prognosticators, all the big syndicated banks and syndicated media that follows housing, they're predicting nationwide somewhere between a five and a 7% increase in the number of homes sold this year in 2021, which is quite remarkable when you consider 2020 was a monster growth over 2019 in the midst of a pandemic. It's going to be quite the ride this year. We're already seeing it. We've got so many buyers looking for property in our area. Of course, Wilmington is the number one place in the United States for inbound people to move because we have such an awesome area, awesome beaches, awesome downtown, and better yet, awesome people.
With those forecasts, there's a couple things to watch for. Watch the interest rates because they are extremely low. Some of the rates I just heard quoted for a VA loan was just unbelievable that our in-house lender, Paul, was able to secure for somebody. What that means is if you were to buy a house right now for $300,000 at the current interest rate which is extremely low, in five years using the forecast that the housing prognosticators have out there with the growth year over year for the next five years and the interest rate that you've got assuming the appreciation that they're indicating, which they're thinking this year is going to be somewhere around five to 6% in house price appreciation, that $300,000 house that you bought right now in 2021, in 2026 if you pay just your minimum monthly payment, you'd have an estimated $50,000 increase in equity. The challenge is you've got to find that $300,000 house right now.
Scared To Sell?
A lot of sellers, and if you're a seller and you're out there worried, you're scared you're going to put your house on the market because it might sell too fast and you don't know where you're going, we hear you. We're getting that information back from sellers. And just so you know, we've got a really neat program. There's a button down below, says, "scared to sell?" Click that and there's another video that goes over. We've got a really nice system that we can list your house, get it under contract, get it closed, you get your money, and you not have to move until you're able to find that next house, whether you're moving to a rental or you're finding something to buy, whether it's here or somewhere else.
This Week's Riddle
I wanted to give a big shout out real quick to last week's winner of our weekly riddle contest for the... Last week, it was a $25 Amazon gift card, and it's Tiana Sellers here in Wilmington. She's actually one of our clients, one of our Homes for Heroes clients, and she's working with Julia on a purchase of a house. I want to congratulate Tiana. And this week down below, don't forget to take this week's riddle. This is a bit harder. There's math involved and this week we're going to give away a $25 gift card to one of my favorite local places, to Ogden Tap Room. Looking forward to hearing everybody's answers on it. We get some doozies, I must tell you. Anyway, thank you so much. If we can help you in any way with your real estate needs or just information or relocation to Wilmington, whether you're working with us or not, we'd be glad to be a resource. We'd be happy to help any way we can. Thanks.
WIN ODGEN TAP GIFT CARD
Congratulations to last week's winner
of Wilmington, NC