Since 2020, optimism has seemed to be in short supply, and understandably so. We've been experiencing a global pandemic, social unrest, an economic downturn, and natural disasters just to name a few.
Interestingly, the challenges brought on by the health crisis have also forced many homeowners to reevaluate their space and what they need in a home in 2021. As a result, things are looking up in the housing market.
Experts are forecasting that 2021 is a year we can be optimistic about real estate for three key reasons.
1. The Economy is Expected to Continue Improving
Tim Day from University of Oregon puts it this way:
"There is nothing fundamentally 'broken' in the economy that needs to heal... there was no obvious financial bubble driving excessive activity in any one economic sector when the pandemic hit... With COVID-19 cases surging again, it is understandably hard to look optimistically to the other side of this winter... Don't let the near-term challenges distract from the economic stage being set for the next four years."
2. Interest Rates Are Expected to Stay Low
In the latest projections from Freddie Mac, interest rates for a 30-year-fixed-rate mortgage are expected to remain at or near 3% in 2021. These low rates will continue to make homes more affordable, driving the 2021 demand for houses.
3. Future Home Sales are Forecasted to Grow
While the economy improves and interest rates remain low, homes are also expected to continue appreciating as more people buy in the coming year. Danielle Hale, Chief Economist at realtor.com says,
"We expect home sales in 2021 to come in 7.0% above 2020 levels, following a more normal seasonal trend and building momentum through the spring and sustaining the pace of the second half of the year."
Experts forecast that buyers and sellers are going to be active in 2021. If you've thought about buying or selling a home this year but have held off, now may be the time to take advantage of this market. Let's connect to take the first step toward your new home today.Super Admin on