What can we expect to see in the 2021 housing market?
The 2021 housing market forecast is proving to be everything we want to hear: better than 2020. While 2020 was not necessarily a bad year for real estate, it did have its shortcomings. Fluctuations with home pricing, discrepancies with listings, and everything that came along with political crossfires definitely had some drawbacks. However, despite all that, it is looking as if 2021 is going to be a slow but steady year. Here’s what we should be expecting, both good and bad:
• Gradual increase in revenue
• More monetary balance
• A rise in mortgage rates from 3-5%
• Better home affordability (due to growth in wages, mortgage rates and tax reforms)
• Increased trends in millennial purchases
• Increased trends in first-time buyer purchases
• Continual lag in inventory
• “Freddie and Fannie” reform
While not all of these are desirable predictions, we can take solace in knowing that we have some bright forecasts ahead of us. Nothing will ever be perfect in real estate – it will always have its respective ups and downs. But at least we know that there is some surefire progress being made in the 2021 housing market, and brokers, agents, and all real estate professionals alike, should be able to feel its rewards by the end of the year.
If there is a word to sum up the forecast for 2021, it would be this: balance. Growth will be a slow climb, but the market will grow nonetheless. There will be some drawbacks in inventory and mortgage rates, but we will also see an increase in revenue, affordability, and millennial/first-time buyer purchases. Essentially, the good and the bad will even out. Overall, we can predict that it will be an above-average year for the real estate market, ending in a small but sure growth by the end of 2021. Let’s hope that pans out!