“The housing market has been on fire this year with record-low mortgage rates and a sudden wave of relocations made possible by remote work. Meanwhile, home prices have pushed new boundaries as buyer demand continues to surge. As we near the end of 2020, here’s a look at the expectations of real estate experts for 2021.”
Brenda Richardson /Forbes
Cheers to 2021!
The 2021 Real Estate Market is looking GOOD! Latest news according to over 25 real estate experts covered in the Forbes article from December 2020. First-time home buyers will remain a strong force in the market. For example, millennials are turning 30 – critical household formation years. Subsequently, add to the mix low interest rates, suggesting an increase in homeownership rates. This increase is expected to be strongest in the Southwest and Southeast of the US
Here are just 5 out of the 26 real estate expert projections from Forbes for the 2021 real estate market:
1. Danielle Hale, realtor.com chief economist: We expect sales to grow 7 percent and prices to rise another 5.7 percent on top of 2020’s still high levels. Nevertheless, sales and price growth will be propelled by still strong demand.
2. Robert Dietz, senior vice president and chief economist, National Association of Home Builders: With home builder confidence near record highs, we expect continued gains for single-family construction, albeit at a lower growth rate than in 2019.
3. Elana Knoller, Better.com: Homeowners and the housing industry at-large will utilize technology even more next year to engage buyers and execute deals. 2020 changed the game for everything! Consequently, we went immediately from virtual touring properties to looking for and locking rates.
4. Todd Teta, chief product officer at ATTOM Data Solutions: There is incredibly low inventory. Less than 500,000 homes for sale, mortgage rates are at 50-year lows. Hence, there’s no sign yet of distressed sellers from the recession coming out.
5. Selma Hepp, CoreLogic deputy chief economist: 2020 did not surprise with its fair share of surprises. 2021 could still have more surprises in store for us. Yet, expectations for the housing market still remain generally positive.
Should we even consider the possibility that prices hit new highs in 2021?
Regarding sellers, “the rollover from 2020 should mean consistent home sales, relatively low time on market, and at or above asking price offer.” The buyer’s market will however continue to continue to be challenging due to low inventory. This leaves us with a note of caution. When rates begin to taper off or rise the tilt between affordability and asking price can cause the market to slow.
Meanwhile here’s what’s been happening in our neck of the woods!
The Dias Team finishes the year 2020 with gratitude. It’s been challenging for many of us now in a second surge of the pandemic. But we have continued to deliver quality service following CDC guidelines to keep us all safe!
As we discussed earlier, real estate keeps moving briskly. To illustrate, just last week we posted 66 Orchard Drive in Cumberland, RI was coming soon. Then this week it went to pending! Keep your eye on the market on a daily basis as real estate continues to soar. Cumberland’s real estate is moving very quickly.
Do you have an area in mind?
Contact us and we can provide a snapshot neighborhood market preview.
Brenda Richardson is an award-winning journalist, writer and editor of Forbes. To read the entire story click here.