Here’s What the Experts Predict for Our 2021 Market

Here’s an idea of what you can expect from our 2021 housing market.

Will the 2021 housing market follow the same path as 2020 or will there be a downturn? Here’s what the experts say:

1. Interest rates are projected to stay low. One of the biggest advantages of last year’s markets was historically low interest rates. Houses became very affordable for buyers, and they’re projected to stay low for the foreseeable future.

2. Home sales are projected to increase by 7%. This will be caused by a combination of sellers who were waiting out the pandemic and brand-new homes being listed. More inventory is definitely good news for 2021.

“The economy is getting better, and unemployment numbers are shrinking, but we’re still not back to where we were before COVID hit.”

3. Home prices are projected to appreciate by 3% to 4%. It’s a simple case of supply and demand: There’s a lot of demand from homebuyers and not as much inventory. Therefore, appreciation is inevitable. Last year homes appreciated at a rate of 7%!

4. Foreclosures should not lead to price declines. Last year featured a lot of unemployment due to the pandemic, and many homeowners opted for mortgage forbearance. The economy is getting better, and unemployment numbers are shrinking, but we’re still not back to where we were before COVID hit. Though we will see a rise in foreclosures, experts say we won’t see anything like what we saw in 2008, mostly because homeowners have way more equity in their homes now.

As always, if you have questions about our real estate market or there’s anything else I can help you with, don’t hesitate to reach out to me. I’d love to speak with you.