Housing Market Trends
There is an increase in the housing market in some areas. This is a good time for a person to sell their home if they live in suburban or rural areas. Prices went up in 2020 and will continue to go in 2021.
People are leaving urban and city areas to relocate to suburban and rural areas. Because of the pandemic, people are moving to these areas where they have more space and are not surrounded by large crowds of people. They can be outdoors with more space and fewer people which makes them feel safer.
COVID-19 created a “Seller’s Market” in some real estate areas. This created a “boom” in suburban and rural areas. Homes sell faster because there are fewer homes available. Sellers are at an advantage and can request more money for their properties. Now buyers must compete for these properties. This could also create a bidding war, with the higher bidder purchasing the property.
COVID-19 has also created a “Buyer’s Market” in a lot of metropolitan cities such as New York, Los Angeles, Chicago, and many more of these cities. People are leaving these areas to go to the suburbs and rural areas. Therefore leaving many vacant properties that can not be sold or rented. This is causing the value of the real estate in larger cities to go down and the price of luxury rentals to go down, also.
Real estate developers like Shalom Lamm think this could be a good time for someone to buy these properties. However, with the value being so low, they might have to sit on the properties for a few years until there is an upswing in metropolitan properties again. It’s kind of like the stock market, buy low and wait until the price goes up and sell when it’s high.
For an investor, it might be a smart choice to buy some of these valuable properties that are rapidly losing their value. Holding on to these properties, knowing that eventually, they will go back up. The big gamble is how long before the prices go back up. An investor would be more willing to take this route, than a developer.
Take a smart man like Shalom Lamm, who is an extremely successful real estate developer. He studies the real estate market and trends, and then invests accordingly. There is a big demand for him and other developers to buy land in the suburbs and rural areas. They will build more houses and meet the demands because people are constantly flocking to these areas.
For a developer, the smarter better business choice is to meet the demand of the large number of people that are moving to these areas where there is not enough housing to supply the people’s demand. While the boom lasts, a developer can make millions of dollars and a quicker return on his investments.
People like him understand the uptick in demands and challenges that come along with being a developer. He knows how to take advantage of the trends in the market.