Travis White Newport Beach Real Estate is always watching the trends that shape the market and has been right when predicting many bubbles and subsequent bursts. And in 2021, he anticipates a large number of potential issues that may complicate your buying and selling trends.
What Issues Travis White Newport Beach Real Estate Expects in 2021
With the rise of Covid-19 and its financial impact on many markets, Travis White Newport Beach Real Estate anticipates many significant changes to the real estate field in 2021. The first thing you’re likely to see, he says, is very low-cost housing. This problem will occur because there will be many unfortunate foreclosures that cause financial difficulties for many during this time.
And Travis White Newport Beach Real Estate anticipates that this cheap real estate will be available in many towns and areas across the nation, providing a unique possibility for the savvy buyer. However, Travis White Newport Beach Real Estate also states that low-cost real estate has a significant downside that may not be easy to understand unless you take a more in-depth look at the market.
First of all, inexpensive housing creates an expectation of low costs for the buyer. In a sense, the idea of “supply and demand” goes against the seller, Travis White Newport Beach Real Estate says. If there are a large number of inexpensive houses, trying to flip a home at a higher price is going to be very difficult because so many other competitors are going to be available attempting the same thing.
Renting Will Go Up | Travis White Newport Beach Real Estate
Another major trend Travis White Newport Beach Real Estate sees for 2021 is the increase of renting single-family homes rather than purchasing. This trend has a lot to do with the economic slowdown caused by Covid-19. However, it also has root causes in movements that have been prevalent in recent years, ones that Travis White Newport Beach Real Estate worries may make buying and selling harder.
First of all, single-family homes are popular to rent because few people want to share a home with anybody. Travis White Newport Beach Real Estate has seen the rise of multi-family dwellings in overseas markets because of space limitations. But in America, where population density has yet to reach the levels of Japan or Europe, Travis White Newport Beach Real Estate sees more people flocking to these homes.
And renting is an obvious benefit for families who can’t afford down payments on a home. Travis White Newport Beach Real Estate worries about this renting trend because renters are rarely long-term, and some may leave a house in bad condition when they move out at the end of their lease. While it is true that renting creates more passive income for the owner, Travis White Newport Beach Real Estate worries it may not be enough for the costs it causes.