In 2021, home prices are predicted to rise by 3%, but it isn’t all bad news. The real estate forecast is tricky to understand as numbers are constantly changing. When you understand the predictions, you can have a better idea of how to deal with the market as a home buyer or seller.
Read this guide on the 2021 real estate forecast and trends.
2021 Real Estate Forecast
The 2021 real estate forecast may be full of many ups according to the experts. After-effects of the pandemic are beginning to rebound, mortgage rates are expected to steady and job recoveries are too.
2020 left a bad taste in a lot of people’s mouths as home buyers and sellers were unsure of their decisions. Now, the inventory for houses on sale is low which means it is the perfect time to enter the market.
Buying real estate may be a little more expensive this year, but the mortgage rates are expected to stay steady at a 30-year fixed rate. Existing home sales and newly built home sales are expected to rise by at least 9%. The numbers may change throughout the year, but one thing is for sure: Home sales and prices are going to rise compared to 2020.
Other real estate trends that buyers and sellers may see this year include:
More Home Buyers Will Enter the Market
The buyer market just at the beginning of 2021 is very high. In fact, only a few states have a stable market while others are experiencing a high market. In 22 housing markets across the country, the market is high, this is great news for home sellers.
Fewer Homes Will Get Listed
Because so many home buyers are entering the market, there aren’t enough homes for sale. Already this year, the amount of homes listed for sale is down. This means buyers are going to have to search hard to find the home of their dreams.
Homes may fly off the market because of this trend. Sellers can expect to list their home and sell it within a few weeks. This may be bad news for buyers as homes will be gone fast if you wait too long to commit.
If you can’t find your dream home on the market this year, you can opt for a lease at a luxury apartment until more homes get listed.
Increase in Foreclosures
Another trend in the 2021 real estate market is that foreclosures are expected to increase. The reason for this increase is due to job losses from the pandemic.
There aren’t many upsides to home foreclosures but homebuyers may be able to find a discount because of this trend. To avoid this issue, be sure to research the market you are in before making a buying decision.
Buy and Sell With Confidence in 2021
The 2021 forecast is not easy to predict as the housing market is forever changing. With more buyers than sellers, you can expect to get a mortgage at a low-interest rate and sellers won’t have to worry about much competition. Whatever your housing goals are this year, it is essential to keep an eye on the real estate forecast.
Need more real estate tips? Check out our other blog posts.
