Quick Look back of 2020 & What to expect in 2021..

[Vijaianand Thirunageswaram]

Hello BP Houston RE Investors,

Happy New Year 2021!! It's been few months since I posted last. I want to do this beginning of year post like every year which helps to look back and plan for this year. 

Despite the insanity of 2020, I know 2021 is going to be an amazing year as long as we have COVID is brought into control. I truly believe that this year is going to see big growth for real estate, and those who have their plans in place to hit the ground running are going to do very, very well!

Last year we were honored to help a number of real estate investors to start their real estate investment journey. We are happy and proud of it. Even though I was working on and off during my break, I got to spend nice time with my family and took a break a bit by running with my kids outside and lunch with family carefully. 

Did you take a break and spend some fun time during Holidays and recharge yourself? I hope you did. Let's get to business. 

Rearview mirror look of 2020

It was really an interesting and stressful year. We started out with lots of enthusiasm and expectation in Jan start of decade etc., COVID hit us just before spring in mid of March and put everything on big hold. Lock down all over the world and panic sets in. Local lockdown and business were forced to close. All businesses including Real Estate came to halt except pending transactions continue it's way to closing. During this time, many Sellers changed their plans and didn't want to sell their homes and move out. Buyers had to put their plans on hold as well due safety concerns. 

After 3 months of really high tension and getting a grasp of the situation, slowly new transactions start to happen in June and houses start showing up more and more in July. Showings and open houses start to happen in July. It was delayed peak season but started out in full swing. Buyers were rushing to find houses quickly as they were flying fast. Mortgage rates were going lower and lower every week bringing more buyers to the market. Demand increased and supply shrunk by August which made prices creep above asking. Every property under 300k range starts to get multiple offers and ends up in a bidding war situation.

By Oct-Dec, bidding war continued and buyers who really needed house were bidding high atleast 5-10k more than asking and end up paying from their pocket because of low appraisal. It's a market nobody has never seen in Houston market or may be all around. It's worse in the Austin area due to tech companies moving in and Dallas as well. 

Even with covid, we were able to sell 3 new built homes and rehabbed 10+ homes for landlords and investors and did quick flip as well. I wouldn't complain at all. We already started construction on our new 9 Townhome project and rehabs for new investors in 2021. I am grateful and Thank GOD for all he continues to give to us

Expectation for Year 2021
Is it TRUE SELLERS market? No doubt. Less Supply, More demand, putting Sellers in the driver seat. 

In this brand new year with lots of hope for vaccines to help reduce the spread of the virus. That should help ease the tension and allow the people to move freely. By mid of April or May 2021, I am hoping to that we should be able to slowly getting to some level of normality once we reach 75-80% vaccination around us. Business should be able to come to normalcy in June by summer which should allow more houses to come to market. 

Until that point, there will be bidding war for both ON and OFF Market properties heavily. It's going to really tricky to work with seller agents to choose the right buyers and tell sellers not to get greedy

I am really being optimistic and also with new government, interest won't go anywhere which is going to put more buyers on the road for new homes. It's going to add more pressure but more supply should ease up little. Let's see and time can only tell. If you are go getter, this shouldn't let you down. If you are an aggressive investors deals are there and you should find it by keeping up with your mentor or realtor.

It's all about being on the top and try to reach your goal. It might not happen in 2 month at this situation but if you don't act, it will never happen. I been wanting to send this email for last few days, finally got it done.

All the best and Have great year ahead!!! 

Be safe, care for your family, friends and community!!

Do you share my optimistic view or have different opinion?  Please do share.