Housing Outlook - Still Hot?
Despite everything that happened this past year, most economists are predicting 2021 to continue to be a hot market with high demand and low inventory. Home sales and prices are expected to continue to rise. The 20-plus housing and economic experts participating in NAR’s annual Real Estate Forecast Summit predicted housing prices to increase 8% in 2021 and 5.5% in 2022. Danielle Hale, chief economist for realtor.com expects home sales to jump 7% with home prices up 5.7%. Mortgage rates are expected to remain low with a slight uptick in the 30-year fixed rate to 3.0%.
Svenja Gudell, chief economist for Zillow, stated “there are millions of millennials aging into their prime home buying years, and millions more Gen Zers behind them that all will want and need homes of their own, keeping demand at a boil for years to come.” Also, the ability to work remotely for many now means people can live where they want versus where their workplace is located. With a thriving real estate market in 2021, buyers should take advantage of the historically low interest rates. Sellers will continue to benefit from the high buyer demand. Whether buying or selling, contact me for more information on how this hot market impacts you.