The real estate market currently is fetching all-time high prices as more people are willing to borrow due to low-interest rates. Low-interest rates matched with a low inventory are creating the record high prices that we see today. The real estate market is expected to hit $2.53 T in sales this year, the highest since 2013, and a 17 percent gain overall. These record prices have left many to consider the option of waiting to see if prices will level off. However, the rates are projected to increase throughout the year as the economy starts to rebound. The increase in remote work opportunities has also caused home prices to rise. This is primarily due to the remote work opportunities that are being offered too many as a result of the pandemic.
As a result of this we are seeing many homes for sale receiving offers well above the asking price. The pandemic has also lead to certain areas exploding in growth, such as Texas and Florida. These states with less stringent covid policies and rules and a friendly tax structure are exploding with growth. This trend is likely to continue due to the new tax policy. In high tax states, the combination of federal and state income could lead to some individuals paying 60 percent income tax overall. Conservative-leaning states with business and individually friendly tax policies will continue to grow. The south has seen the largest gain in population out of every region in the United States. This is largely due to the business friendly environment’s which have lead to corporate relocations to those states.