Strong Seller’s Market Predicted for 2021
Realtor.com looks to a strong seller’s market in 2021 in its Housing Market Predictions and Forecast.
The median price is forecasted to rise 5.7% hitting a historic high. Mortgage rates for 2021 will go up later in the year to around 3.4%. Overall nationwide home sales should increase by 7% adding fuel to an already hot seller’s market.
“I do see a more even-paced market which is good news for brokers and their buyers. We won’t see the same pandemic buying frenzy we saw in 2020 beginning in May,” explains realtor.com’s chief economist Danielle Hale. “Inventory will remain low for the first quarter of 2021. Buyers who have taken a holiday break will be back looking after the first of the year,” Hale cautions.
As long as work from home remains in effect for companies, expect suburbs to continue to be in high-demand.
According to the forecast, “if companies commit long-term to remote work, demand for these homes could see an additional boost in 2021.” Buyers can consider waiting until later in the year for more inventory to go on the market. Though they most likely will pay a higher interest rate.
Here’s some advice from Hale:
“If you are a buyer in the first quarter you still need to be persistent. If you are struggling don’t lose hope because you will likely see more options later in the year.”