2021 Housing Market Expectations

The housing market has seen a record growth starting summer 2020 after a few months of slow growth during COVID-19 pandemic, despite the uncertainty in the other economic sectors, especially the jobs market.

This growth was driven by 3 key factors: Historic Low-interest rates, a low inventory of properties available for sale, and a surge in city residents looking out to relocate to the suburbs following the many cities unrest during the time of protests.

Home sales have been at the highest in the last 15 years since the last depression. This time of the year during the Holiday season historically is the slowest but so far, the real estate market has not shown any kind of weakness driven by the low-interest rates.

For the first time in so many years that we see a seller’s and buyer’s market. That may sound like a mistake but let me explain it.

It is a good time for sellers to sell because of the short inventory when they have leverage in dictating a lot of contract terms in their favor but it is also a good time for buyers to buy because they can afford more space with the low-interest rates.

The latest housing numbers are showing 16 consecutive weeks of double-digit price appreciation. When comparing this time of the year with the same time in 2019, home prices are approx. 12-14% higher.

The expectations are for a strong housing market in 2021 due to the fact that it is less likely that the mortgage interest rates will jump up all of sudden with the federal government is trying to stimulate the economy following the pandemic, as a result, buyers will keep trying to benefit from this opportunity before interest rates start going up again while sellers are closely watching the market and selling their properties for the highest price possible due to the low inventory.

Feel free to contact me with any questions you may have or if I can assist you with any real estate needs.