The world’s economy sank into depression at the onset of the COVID-19 pandemic. Many countries faced economic recessions while businesses had to fold up as a consequence of the pandemic.
However, it was surprising to most analysts and industry experts that several industries could weather the storm and emerge better off after the pandemic.
One of the major industries was the real estate industry across the world. Industry experts estimated that real estate prices climbed to their highest prices in 2020. This increase signified a rise of 15% from the past year.
While these figures represent hope for the industry, there are still opportunities for the industry to grow even higher in 2021.
Sawyer Winston, one of the biggest serial entrepreneurs and real estate investors in San Diego analyses the extent of the industry’s growth. Our chat with the business mogul shares some insight and expectations for the San Diego real estate industry in 2021.
Here’s a breakdown of all the ideas we shared in our chat with Sawyer Winston.
Sawyer, did you expect the real estate industry to experience a boom in a pandemic year?
Well, I anticipated a boom, but I didn’t envisage that the increase will come in double figures. At the onset of the pandemic, many experts expected prices to fall and a slight recession in the industry.
The trends in real estate is looking good despite the pandemic. However, with the lockdown measures and remote work strategies, more people began to see the need for residential areas and temporary office spaces. These events sparked a boom in demand, and subsequently, the value of the industry rose.
How is San Diego taking advantage of this boom?
I believe the authorities are doing the best they can to regulate the industry. However, entrepreneurs and real estate investors can do more to leverage the value of the industry.
Realtors should look to improve tourist areas and makeshift residential buildings. That way, we can gain more value from the boom.
Do you anticipate a change in San Diego’s industry?
Yes. The industry in San Diego is not as productive as the rest of the country. Unfortunately, sales volume is reducing in San Diego.
However, we can get back better by focusing on our strengths. San Diego has a lot of millennials who will soon be looking to independence. This large population will drive home prices and rent.
More homes will be built, and millennial demands will drive technological advancement in residential buildings. There will also be more expensive homes in the San Diego metropolis.
How well do you think the industry will fare in 2021?
There will be some level of stability. Since remote work and stay at home policies are still in force in some areas, they may drive real estate investment. In San Diego, sales volume are expected to take a spike up from the dwindling figures.
Generally, 2021 will be a good year for real estate and investors. And without a doubt, the San Diego housing market will make a good investment location in 2021.
Do you think the industry will become saturated in the coming years?
There’s enough landmass, and there’s enough human resource to go round. I do not see the real estate industry become congested just yet. Regardless, the commercial real estate will remain viable in the years to come.