It won’t last forever but Glenn Kelman, CEO of Redfin, expects “the insane” real estate boom will continue into 2021.
“There are so many people now who have decided they’re not going to be able to buy a home by year-end, who expect to do so going into 2021, especially as their kids shift school districts. I do think we’re going to see this for some time.”
The demand for housing is primarily being driven by affluent professionals who are able to work remotely, Kelman said. That has given them the option of moving out of major metropolitan areas into more distant suburbs or, he said, buying vacation homes “and then taking a permanent vacation where they’re working from those homes.”
Low mortgage interest rates and tight inventory have consistently been cited as factors behind the release of recent metrics such as the 9.4%-increase in September homes sales, a 12.2%-rise in the national median list price of homes, and 2.7-month supply of houses for sale, the lowest level for housing stock since 1982.
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