What’s ahead in 2021?
2020 faced fair share of ups and downs, we know one thing to be true: the real estate market not only met expert predictions, it surpassed them, breaking records along the way.
How will 2021 fair? Will will continue in the same direction or will there be a downturn. Let’s look at what could impact our real estate market . . .
1. Interest rates are projected to stay low
Record-low mortgage rates were one of the biggest drivers for the booming real estate market in 2020. Affordability reached one of the highest levels in the last 30 years.
Experts are predicting mortgage rates will remain low for the foreseeable future. While home prices continue to rise, the low mortgage rates have made purchasing a home still affordable, especially for first time home buyers.
2. Home sales are projected to grow by 7%.
We are hoping and anticipating an increase in inventory for 2021, from current homeowners and new builds. More inventory will be a welcome change for this year, especially for homes under $500,000.
3. Homes are expected to appreciate by 3-4% overall.
Supply and demand – with high buyer demand and low inventory, home prices will appreciate. Experts are looking for price appreciation , just at a slower pace reflecting a more balanced market.
4. Anticipate some foreclosures.
Unemployment is slowly declining. Due to the pandemic and economic challenges, we still anticipate some foreclosures. However, this is not expected to lead to any crisis ore home depreciation. Most likely any increases will be absorbed by the market.
The next 12 months look to be as promising as last year, with interest rates remaining low, buyer traffic staying high and inventory levels predicted to rise.
Call or text me if you have questions about your property or are interested in discovering new possibilities. Let's Connect today!
*Information provided by Keeping Current Matters.
