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Where's the Venice Real Estate Market Going in 2021?

Whew 2020 has been a doozy. Like a lot of folks out there, we are more than ready to turn the page on 2020 and forge ahead into 2021. In reality, the change from one year to the next is largely symbolic, but this new year brings with it plenty of optimism and a renewed sense of purpose. For those that follow the real Estate Market in detail, the effects of the pandemic on home values and sales weren’t nearly as dire as predicted. In fact, despite a slow down in the springtime, many parts of Florida recorded record growth and sales numbers.  Venice Florida real estate was smoking hot. In fact, Gulf Shores Realty experienced a 35 increase in sales in 2020 over the prior year. But, what should we expect as we place 2020 in the rearview? Where is the Venice real estate market going into 2021? These are both key questions to consider if your plans in the new year include buying or selling real estate in Southwest Florida. A Continuing Trend of Growth In July of 2020, as the market started moving again after a brief springtime slowdown, we saw pretty steep uptick in both sales volume and property values. Recorded sales were up 11.7 compared to the same time period in 2019. More to the point, median single-family home values went up 4.7 as condos and townhomes saw a similar increase of 6.2. Pent up buyer demand as a result of widespread uncertainty is almost certainly the culprit, combined with record low mortgage rates. Many industry experts expect both of these trends to continue into the new year as well.  The pandemic caused people throughout the country to reevaluate their lives and priorities. Many chose to move to Florida for the sub tropical climate and desire for a better lifestyle.   A Degree of Uncertainty The best predictions in the world by the smartest people in the room are still just that - predictions.  No one has a crystal ball. The past year has shown us that the Florida real estate market is hot. Home buyers, home sellers and real estate agents have demonstrated plenty of innovation in finding new ways to continue to do business in the face and uncertainty and public health restrictions. Covid-19 continues to provide plenty of uncertainty. Many experts point to latter half of 2021 as a time of recovery. There are plenty of signs out there that recovery is well underway even now. For example, new developments and upcoming new home projects will add plenty much needed inventory to the market. But no one really knows when things will truly return to normal. All the more reason to act now and invest if you can. Mortgage rates are at a historically low level, so if you can find a home you like, buy now And when things do return to something resembling normal, home values are almost certain to continue growing in value, even as mortgage rates start to increase again. Greater Investment Opportunities As we’ve already pointed out, super low mortgage rates have made buying a home more affordable. This has had the added benefit of increasing the number of properties purchased as an investment. The state of Florida has especially lax laws when it comes to rental properties, making it a very attractive place for investors to purchase property as either a short or long term rentals.  In fact, Venice has been consistently ranked as the number one place in Florida to invest in a long-term rental. A Strong Sellers Market to Continue Florida is experiencing the pressure of buyers from all over the United States wanting to move South. They are fleeing more populated urban areas where they feel more susceptible to Covid 19.  They are seeking a better lifestyle and are lured by our subtropical climate and glistening beaches. This has resulted in a decrease in resale homes and a dramatic reduction in inventory. New home construction has attempted to keep pace. This Seller's market also resulted in increased home prices and even price increases of new construction homes. It is simply an example of supply and demand. The trend is expected to continue through most of 2021. Buyers would be wise to submit offers quickly once their decision has been made as multiple offers will be common. A Move to the Suburbs Finally, 2021 is predicted to see even more movement into the suburbs, or smaller communities away from the traditional larger centers. This movement to the suburbs for workers across many industries has been a long-term trend for decades, but 2020 has provided an extra push. The pandemic has forced many employers to enact work from home policies and upgrade existing infrastructure to support it. Surprise Surprise - employees love the freedom it affords. Current technology has removed many of the barriers that had traditionally made remote work difficult. The necessities of social distancing has made it workable. Employers have in some cases experienced increased worker satisfaction and efficiencies with remote work.  It's likely that continued acceptance of work from home arrangements will encourage workers to seek out homes in affordable communities, like those found across Southwest Florida. If you're considering listing your home this year, we'd love to help you sell it Please contact Gulf Shores Realty online or call 941.488.6644 to learn how we can help today



This post first appeared on Venice Real Estate, please read the originial post: here

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Where's the Venice Real Estate Market Going in 2021?

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