Although the real estate market has been performing remarkably well during the past year, a once soaring economy was stopped in its tracks due to the pandemic. With two approved vaccines on the market, there seems to be hope that the economy will soon recover. When and just how quickly remains to be determined though. A recent survey from the Business Roundtable set out to gauge CEO optimism.
More than 40% of CEO’s surveyed believe business conditions will improve to pre-pandemic levels in 2021. Furthermore, they expect their firms to hire more employees and invest more over the next six months. The CEO’s expect the economy to grow at a 1.9% annual rate in 2021, an improvement over a negative growth rate expected in 2020 due to the pandemic. Overall, CEO’s are optimistic about sales growth and capital spending in the new year.
Despite the subdued job market, real estate has been soaring. Of course, this is in large part due to historically low mortgage rates. Since mortgage rates are not expected to drop any further, the job market recovery becomes even more important to sustain home buying. As has been the case for the past 10 months, the ongoing pandemic will continue to play a big role in this recovery for likely the first 6 months of the year. Nonetheless, the overall bullish sentiment from many CEO’s is a positive sign as we begin the new year.