What Can You Expect From Our 2021 Market?
by: Jeff Quintin, on January 18, 2021 - Market Update
Here are my major predictions for our real estate market in 2021.
Today I’m sharing my real estate market predictions for 2021. My first prediction is that prices will continue to rise. Our incredibly low inventory will still be running up against our market’s sky-high demand, and that means home values will have nowhere to go but up.
Second, rates will remain favorable. Believe it or not, they just dropped again—some buyers have been able to lock in their loans with an interest rate below 2%! A wider range of buyers can secure 2.5% for a 30-year fixed mortgage. Affordability is the best it’s ever been, and all indicators point to another great year for homebuyers, despite rising prices.
Third, I predict that our inventory shortage will persist. Just like in 2020, this year’s market will be very tight and competitive. Buyers will need to be patient, but also be ready to pull the trigger at a moment’s notice; since bidding wars will rage on throughout 2021, their offers will need to be aggressive right out of the gate.
Fourth, more homes will be bought and sold virtually. Virtual home tours will be the norm, offers will be submitted virtually, and closing paperwork will be signed digitally. These modern conveniences necessitated by the advent of COVID-19 have sped up the pace of transactions, and they’re here to stay.
Though I predict the overall number of transactions in 2021 to be roughly the same as what we saw last year, the average price points in most markets will be higher. The 2020 market astounded many with its strength, but 2021 is primed to be just as strong, if not stronger.
As always, send me an email with any questions you have or reach out via phone if you’re ready to start planning a move in the market in this brand-new year. I’d love to learn about your specific needs and find out how I can be of service to you.