What a difference a pandemic like Covid makes in the housing market! Let's take a look at the most recent housing market trends and forecasts for 2021 & 2022. We'll go over the current overall real estate trends, price and rent increases, housing sales and supply, and mortgage rates and delinquencies, as well as other key industry takeaways and insights into the US housing market. This year has seen an extraordinarily strong real estate market, with strong housing demand in practically every part of the country.
The California housing market ended the previous year on a high note as sales remained strong in December and the median house price reached another record high. The same momentum has been carried forward in 2021. Homes in California are staying on the market for about seven days (median time) before going under contract, with 70% of homes selling above their list prices, according to the data released by C.A.R. for May 2021.
California’s median home price sets another new record high as the statewide median price inched up 0.5 percent on a month-to-month basis to $818,260 in May. The new median sales price of existing single-family homes is 39.1 percent higher than the $588,070 recorded last May when the real estate market in California tanked during the spring lockdown.
Data by ABoR. Forecast by Zillow.The Austin housing market is soaring. The Austin market reflects what's going on in other big cities around the country. A lack of supply is lagging strong demand, causing home prices to rise. Austin's rapidly expanding economic industry is driving more people into the city which is increasing the housing demand. Austin home prices are soaring and the buyers have to bear the brunt. Low inventory, high buyer demand, and rising prices will continue throughout the year, creating a competitive market.
Capitalization Rate or Cap Rate is a term often thrown around in real estate discussions. Yet many people don't really understand what it means. After all, it can be confused with cash-on-cash returns and the rate of return. You will understand what a cap rate is in real estate in this post, from its definition to methods of calculation. When to utilize capitalization rate, how to calculate cap rates, what is a decent cap rate on investment properties, and why determining cap rates is crucial for real estate investors are among the topics covered.
Taxes rarely make for exciting reading material, but if you own an investment property, there’s at least one set of IRS regulations you absolutely will want to understand: 1031 Exchange Rules. Real estate investors like you have the option of using a 1031 Exchange. Most investors find it to be a useful instrument for reducing capital gains and other taxes on their earnings. Why? Because normally when you sell an investment property for more than what you paid for it, you’d have to pay a hefty capital gains tax.