2020 Market Review

Written by: Peter Prudden

There were numerous cross-currents that played out in the real estate sector nationwide during 2020 that led to a single conclusion, activity. We were hit with a pandemic in the spring, which historically kicks off the housing market. As we ascended into April, the world effectively was a standstill, and the real estate market felt this effect. Yet, what we didn’t know is that real estate would be one of the leaders coming out of the crisis. People pivoted out condos and lofts, vacated apartments, and headed for home offices, gyms, and additional space in the suburbs. The next fundamental catalyst that added to this pivot was the urban unrest seen over summertime. What we are experiencing is not a knee jerk reaction, but a psychological shift in how people live their lives and the premium they place on space and safety. We believe this will be a continued trend for 2021. 

The backdrop of this environment was laced with a renewed commitment of Government spending in the form of purchasing treasuries and de facto monetary printing. The last time this occurred, coming out of the financial crisis in 2009, consumers spent in very specific ways. Faced with the same set of circumstances that behavior won’t change. Adding in the tech transformation of real estate has officially been ushered in, home equity balloons, mobility is in great demand than ever, interest rates are low, stocks are at all-time highs, and cheap money is to be had. Opportunity is here for the housing market.