Ingo Winzer, one of the best real estate market researchers, is predicting that the pandemic will probably last beyond 2021 and that the economy won’t recover for a couple of years.
He believes that there will be a large number of evictions this year, and many empty units because landlords will not easily find qualified replacement tenants. But long term, more people will be renting.
He believes the homeowner’s market had a good 2020 because of low rates, but as the pandemic goes on, potential home buyers and existing homeowners will have a tougher time financially.
All this makes sense to me. Keep in mind that we currently have many state and federal prohibitions on both evictions and foreclosures. As the prohibitions on evictions keep getting extended, some landlords will get tired of being landlords and will decide to sell. When the prohibition on foreclosures ends, we will see more real estate inventory on the market from banks. When the extra government benefits end, we may also see more foreclosures. At some point, perhaps late this year, the currently hot real estate market is likely to begin to cool.
If you are interested in his video, you can watch it here: