Real Estate Optimism for 2021
We will remember last year for many reasons; optimism may not be at the top of the list. In the past year we experienced a global pandemic, an economic downturn, natural disaster, and social unrest… just to name a few. The challenges brought on by the health crisis also forced many homeowners to reevaluate what they need in a home going into 2021 and beyond.
Now here is some good real estate industry news moving into 2021!
1. Mortgage Interest Rates Are Projected to Remain Low
According to 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 in 2021.
2. The Economy is Expected to Keep Improving
Tim Duy from the University of Oregon puts 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 stage being set for the next four years.”
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.”
—- Bottom Line —-
Experts are forecasting that buyers and sellers are going to be active in 2021. If you have thought about buying or selling your home this year but have held off, now may be the time to take advantage of this real estate market.