What to expect in the 2021 Real Estate Market
Wow, 2020 sure was interesting! When the Coronavirus pandemic took over much of the year, it led to some unexpected outcomes in the real estate market. The good news is that real estate experts have stated the housing market has seen record-breaking growth since the pandemic disruption last spring.
Whether you are interested in buying or selling a home in 2021, it’s important to keep an eye on the trends for 2021.
Competitive Buyer’s Market – With incredibly low inventory 2020, the housing market in 2021 looks to be much more hospitable for buyers. Although the pace for fast sales may remain the same, buyers who are prepared with where they want to live, have created their must-haves for their home, and have lined up financing will have an edge.
Suburban Migration – In the continuation of the wave that was already in motion, the trend to move to the suburbs has simply accelerated due to the pandemic. Buyers continue to flock to the suburbs for more space, affordability, and not being tied to how close they live to their work. The pandemic has provided many Americans the opportunity for telecommuting which offers far more flexibility, allowing them to move away from big cities and into the suburbs.
Home Prices Are Still Rising – The strong demand in the housing market will continue to drive home prices up. “Prices rose 12% year over year nationally as folks waged bidding wars over a historically low number of properties on the market. Many buyers sought out larger properties to work from home, educate their children, and maintain social distance from others.” (realtor.com)
Mortgage interest rates – Interest rates for the housing market are expected to remain low but increase gradually. Rates are anticipated to stay near 3% over the next 18 months, which will continue to make buying easier and buyers more motivated. (freddiemac.com)
Realtor.com 2021 Forecast
Mortgage rates: Avg 3.2% throughout the year
Existing Home Median Sales Price Appreciation: Up 5.7%
Existing Home Sales: Up 7%
Single-family Home Housing Starts: Up 9%
Homeownership Rate: 65.9%
The silver lining for buyers is that more homes are likely to become available near the end of 2021. This will offer people more options to choose from and take off some of the pressure. With a larger selection of homes for sale, buyers won’t be forced to make a decision, they will have more time to make the right choice for their family.
At Haus Paws, all of our agents are experienced real estate professionals. We strive to break down the real estate transaction to its essentials, simplifying the process that others overly complicate. When you choose Haus Paws, you’ll find the process of buying or selling a house straightforward and uncomplicated.
We provide the same services as other real estate brokers, but we have a different ending…We donate half of all our commissions to local animal rescues. We are saving lives with every home sold!
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