The Burke & Co. Weekly Market Report for Avalon, Sea Isle, and Stone Harbor– Week ending January 2, 2021
Burke & Co. is willing to go on the record with 3 predictions for real estate in 2021:
- Fed established low interest rates coupled with its new commitment to policy designed not simply to target real-time annual inflation at 2% but to instead adjust or average out to 2% will continue to provide power and strength to the real estate market. Expect inventory to remain low, sales to remain strong, and home prices to continue to rise. This will be especially true for the first half of 2021 but the pace– if not the direction– should taper in the latter portion of the year.
- Color will enter the home design palette. We have reached peak grey-scale. With the grey and white home design schema at full ubiquity, expect to see designers begin to incorporate colors and even patterns into our home and office spaces. (And in 2020 and into the future, those two places might be the same.) We’re a long way from a Wes Anderson world, but the current clean, open canvas in so many homes is the perfect launching place for the introduction of some new vibrancy, even if it initially remains on the subdued and muted side. Think about light but colorful wall paint colors to enliven your kitchen which is now a couple years old and features white cabinets with a white backsplash and grey-white counters.
- Defying the national trend which has seen rental rates decrease in cities as people have flocked to home ownership in the suburbs, expect rental rates at the shore to soar. High home ownership turnover often leads to rate increases as new owners tend to charge more than previous owners who had happily rented to repeat tenants for many years. This phenomenon is also spurred by new buyers attempting to re-coup the extra cost of purchases in a market that saw a dramatic rise in prices in 2020. But largely, this rise will be the result of a meta-economy process of inflation in general. In addition to fed policy, COVID in 2020 actually led to the greatest savings for the middle class in American history since at least the 1950s. We just had less to spend our money on. More available dollars means more competition for those things people remain willing to buy.
If you are ready to start your plans to buy or sell, call us at our team line at 609-478-0333 or email [email protected]
And of course, take a look at all of this weeks new listings, under contract, and sold homes with these links.
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