January 21st, 2021
With the many ups and downs of 2020, many have been wondering what this would mean for the housing market in 2021. Will 2021 follow the same trajectory as 2020? Will there be a possible downturn? Here is what we know.
Interest rates are projected to stay low in 2021. These low rates have caused affordability to reach one of the highest levels it has in the last 30 years.
Home sales are projected to grow by 7%. It is likely that many sellers opted to wait to sell their home until the new year and are now ready to put it on the market in 2021.
Home prices are projected to appreciate by 3-4%. Experts predict we will continue to see appreciation in home sales, just at a slower pace.
Foreclosures should not lead to price declines. Unemployment was a large result of the COVID-19 pandemic and caused many foreclosures in the housing market. While unemployment is slowly declining, it will take some time to reach pre-COVID levels and, therefore, foreclosures are expected to rise. However, this does not mean we will reach a foreclosure crisis like we did in 2008. We are also not expecting this to lead to major depreciation in home values.
Despite all that has happened in the past year, 2021 is looking strong. With low interest rates, increased home sales, and appreciating home prices this year is a great year to buy, sell, or invest in real estate.