Here’s what we believe will happen in the 2021 real estate market.
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We often get asked what we think 2021 has in store for our real estate market, and there’s a lot going on that can impact the market. Not only is the COVID-19 situation still ongoing, but the new presidential administration is still settling in. That being said, here are three predictions to keep in mind:
Prediction #1: Home prices will continue to rise. Realtor.com reports that the median listing price rose 13.3% last year, and experts predict that this uptick will carry on into 2021.
With these low interest rates and more new buyers entering the market, we could see the biggest sales volume increase since the 1980s.
Prediction #2: Refinances will begin to slow. By the fourth quarter of 2021, approximately 27% of all mortgage originations will be refinances. During the fourth quarter of 2020, this number was close to 60%.
Prediction #3: Inventory will increase. Experts have higher optimism for increased housing in 2021 because of the high demand for new construction in suburban and urban areas. Also, we anticipate that there will be more foreclosed properties, which should increase the sales volume of homes. In fact, with these low interest rates and more new buyers entering the market, we could see the biggest sales volume increase since the 1980s.
As always, if you have questions about this or any real estate topic, don’t hesitate to call, text, or email us. We’re happy to help.