Will House Prices Go Down in 2023
Despite the coronavirus outbreak, shutdowns of county and city government, schools closed, economic uncertainty, the 2021 housing market forecast expected to be best in 15 years., Many economists and so-called experts are dumbfounded by how strong the housing market has been in 2020. Despite the coronavirus outbreak hitting the nation in February 2020, the housing market finished off the year as one the best in over a decade. Home prices hit a ten-year high in November 2020. The COVID-19 outbreak skyrocketed unemployment claims by more than 50 million Americans.
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Historic Unemployment During The COVID-19 Outbreak Does Not Deter Homebuyers And Housing Demand
The unemployment rate surpassed over 20% over the heart of the pandemic. The unemployment rate is quick recovery at a faster than expected speed. The unemployment rate of just under 7.0% was reported for November 2020. Experts and analysts in real estate-related fields are all unanimously forecasting 2021 will become the hottest housing market in fifteen years.
Employers Expanding Remote Job Opportunities
Top real estate analysts unanimously are forecasting record-high new construction and setting a record as the year to record the highest number of homeowners:
- The coronavirus pandemic has changed our workplace
- Most companies have converted a lot of their employment and/or the way they do business by converting many brick and mortar jobs to remote work positions
- Becoming a remote worker enables wage earners to live anywhere they want
- They are no longer restrained to a certain location
- They can live in any major city in any may state
- More and more renters are fleeing city living to the suburbs where they can purchase a home with a home office
- Cities like Chicago is in a state of emergency with the out of control budget crisis, high crime, skyrocketing property taxes, and political issues
- Far left-liberal mayor Lori Lightfoot is also planning on defunding the Chicago Police Department while crime and murder rates are at historic high levels
2021 Housing Market Forecast After The Economy Recovers From The COVID-19 Pandemic
High-taxed states are seeing a mass exodus of not just individual taxpayers but small business owners as well. For example, Illinois is in a serious financial crisis. Under the leadership of first-time rookie governor JB Pritzker, the state is now under the second wave of an executive stay-at-home order. Illinois was the first state in the nation to shut down and is one of the last states to reopen. However, due to the surge of coronavirus cases, JB Pritzker has issued a second wave of the stay-at-home order on October 30th, 2020.
All indoor dining and indoor places of businesses were ordered closed. JB Pritzker and dozens of Democrat mayors and governors have been politicizing the coronavirus pandemic to benefit themselves politically. However, shutting down cities and states with a virus that has a 99.7% survival rating has taken a toll on individuals and businesses. Small businesses employ two-thirds of the workforce. States like Illinois, New York, California have the highest unemployment rates.
More and more businesses are going out of business permanently due to the extended shutdown order by mayors and governors. Individual taxpayers, families, and businesses are calling it quits and moving out of these states to lower-taxed states where it is under Republican control.
2021 Housing Market Forecast Expected To Be Best In 15 Years: What States Are People Fleeing To
In general, all states with Democrat-controlled governors, mayors, and lawmakers have high taxes and are in financial crisis with the highest number of out-migration. Lower taxed states are under Republican control and are thriving with in-migration.
Lower-taxed states are raking in billions in revenues. President Donald Trump moved his permanent residence to Florida from New York last year. Donald Trump Junior and Eric Trump are planning to exiting New York to Jupiter, Florida. New York is losing hundreds of thousands of individual taxpayers and businesses.
High-Taxed States Losing Taxpayers Fleeing To Low-Taxed States With Affordable Housing And Low Property Taxes By The Thousands
Florida, a state with no state income taxes, is one of the hottest states where taxpayers from high-tax states are fleeing to. Texas, another state with no state income taxes is seeing tens of thousands of new residents every day. San Antonio, Texas is another hot spot for taxpayers fleeing high-taxed states. 2020 has been a very tough year due to the coronavirus pandemic. Unemployment numbers reached 50 million Americans in July 2020. The unemployment rate has topped over 20% during the heart of the pandemic.
Strong Housing Market Expected To Continue Into 2023
Despite the economic downturn due to the coronavirus pandemic, the housing market has remained stronger than ever. Part of the reason for the strong 2020 housing market is due to the Federal Reserve Board dropping interest rates to zero percent. With the zero percent interest rate drop by the Central Bank, mortgage rates tumbled to a historic low.
Continued Demand Of Housing Versus Inventory Of Homes
Michelle McCue has been studying the out-migration of taxpayers and businesses from high-taxed states. Michelle McCue said the following:
The U.S. housing market will get stronger through 2021 as the economy recovers from the pandemic-driven recession, while mortgage rates remain historically low, a major brokerage predicts. Annual home sales are expected to rise more than 10% in 2021, following a 5% rate of growth in 2020. Even as the pandemic hopefully nears its end, Americans will continue to buy homes that fit their new lifestye. As a result, 2021 will see more home sales than any year since 2006. The housing market will continue to be buoyed by historically low mortgage rates, according to Redfin, which predicts that the rates will rise slowly from 2.7% to around 3%. In the meantime, more new homes will be built in 2021 than in any year since 2006, according to Redfin’s forecast. New construction has already picked up since the pandemic began, and building permits increased 21% from September to November compared to the same period last year.
Despite high unemployment due to the coronavirus pandemic, home prices are expected to remain strong into 2021.
2021 Expected To Be The Strongest Housing Market In Over A Decade
President Donald Trump did great in reviving the U.S. economy. Over 80 million Americans have voted for President Donald Trump in the 2020 election. However, with the widespread voter and election fraud, Joe Biden got the necessary electoral votes to win the presidency. The extent to the validity of Joe Biden winning the election is yet to be seen. We will update our viewers as new developments to this story get released. In the meantime, whoever the president is or which party is in control of Congress, the housing market is stronger than ever.
Americans In High-Taxed States Fleeing To Low-Taxed States
The housing market is expected to be the best in 15 years in 2021. However, there are high-taxed states like Illinois, New York, California under incompetent governors’ control that will have a sluggish housing market in 2021. Red states like Florida, Texas, Alabama, Arizona, Nevada, Kentucky, Georgia, North Carolina, Tennessee, Indiana, Wyoming, Oregon, Montana, South Dakota are expected to have strong housing markets and rapid economic recovery from the coronavirus pandemic.
High Home Prices Will Become An Issue Due To 2021 Housing Market Forecast
Texas is one of the states with the highest in-migration numbers in the nation. Droves of Californians have been relocating to Texas for the past several years. Due to the mass in-migration in Texas, home prices have skyrocketed where many homebuyers are having a hard time finding affordable housing.
Dale Elenteny said
Historically low interest rates have allowed builders to finance their projects at lower costs, and because homebuyers are now more eager to buy in suburban and rural areas where land is cheaper than in the cities, there will be more areas where homes can be built profitably. It is expected more than 14.5 million Americans will migrate across county lines, the highest number since 2004. The normalization of remote work during the pandemic has set off a domino effect of increased homeownership. By the end of 2021, the American homeownership rate will reach 70% for the first time since 2005, according to Redfin’s predictions. At the metro level, San Antonio, Texas, Tucson, Arizona, and Tampa, Florida, will be the hottest housing markets in 2021, as major cities nearby, including Austin, Phoenix, and Miami, become unaffordable.
As a mass exodus of taxpayers is fleeing high-taxed states to lower-taxed states like Florida, Texas, Arizona, Nevada, home prices in these states are skyrocketing where it is becoming not affordable. Home prices in states experiencing thousands of out-migration of taxpayers are still skyrocketing. The housing market remains strong even during high unemployment numbers, government shutdowns by governors, and the coronavirus pandemic.
November 14, 2020 - 5 min read