This year will be remembered for many reasons, and optimism is one thing that’s been in short supply since the spring. The challenges brought on by the ongoing public health crisis have pushed homeowners to reevaluate what they need in a home going into 2021.
While there may be fear surrounding the economy heading into 2021, industry experts are forecasting that the 2021 real estate market is one to be optimistic about. Here is what they are saying:
1. The Economy Is Expected to Continue Improving
Tim Duy, Economics Professor at The University of Oregon and Senior Director at the Oregon Economic Forum put 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 hi…Don’t let the near-term challenges distract from the economic stage being set for next four years.”
2. Interest Rates Are Projected 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% next year. These low rates will continue to make homes more affordable, driving demand for housing in 2021.
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 in 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 your 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.