2021 Real Estate Forecast
Are you curious about what the real estate market will be like in 2021? Are you thinking of making a move or wondering if the time is right?
Dr. Lawrence Yun, Chief Economist from the National Association of REALTORs is forecasting* a strong real estate market in 2021 due to:
Significant job recovery due to availability of the COVID vaccines,
Ongoing record low mortgage rates,
Demand for homes rising due to remote working flexibility, and
Available homes constrained by low inventory.
Dr. Yun predicts 5-10% increase in home sale prices in 2021 nationally!
This is after 2020 home prices rose 7-9% nationally. That is really quite amazing when you think home prices have been rising each since 2015.
The pandemic shifted a lot of people’s priorities in 2020. There are people in the market now who were not even considering moving prior to the pandemic. During 2020 people realized they were no longer content with their current home. Many people are looking for larger homes with more space to accommodate multigenerational living or extra bedrooms to convert to 1 or 2 home offices. There are also people looking to purchase homes in less expensive markets or areas because they will continue to work remotely once restrictions are over.
Also there continues to be a national shortage of new construction. More new homes would help alleviate some of the demand of home buyers. Dr. Yun expects it would take 30% more homes in the market to start to balancing supply and demand nationally.
So what does all this mean to you? Are you looking to resize your current home? Are you one of those hoping to move to another market or closer to family?
I can help! I’m happy to help with these and any other questions you may have about the real estate market. I can also provide you with a valuation on your current home or local market data to help you determine whether the time is right to buy or sell a home.
