The housing market was a shining star in 2020, fueling the
economic turnaround throughout the country. As we look forward to 2021, can we
expect real estate to continue showing such promise? Here’s what four experts
have to say about the year ahead.
Lawrence Yun, Chief Economist, National Association of
Realtors (NAR)
“In 2021, I think rates will be similar or modestly
higher, maybe 3%…So, mortgage rates will continue to be historically
favorable.”
Danielle Hale, Chief Economist, realtor.com
“We expect sales to grow 7 percent and prices to rise
another 5.7 percent on top of 2020’s already high levels.”
Robert Dietz, Senior Vice President and Chief Economist,
National Association of Home Builders (NAHB)
“With home builder confidence near record highs, we
expect continued gains for single-family construction, albeit at a lower growth
rate than in 2019. Some slowing of new home sales growth will occur due to the
fact that a growing share of sales has come from homes that have not started
construction. Nonetheless, buyer traffic will remain strong given favorable
demographics, a shifting geography of housing demand to lower-density markets
and historically low interest rates.”
Mark Fleming, Chief Economist, First American
“Mortgage rates are expected to remain low for the
foreseeable future and millennials will continue forming households, keeping
demand robust, even if income growth moderates. Despite the best intentions of
home builders to provide more housing supply, the big short in housing supply
will continue into 2021 and likely keep house price appreciation flying high.”
Bottom Line
Whether you’re ready to buy or sell a home in 2021, if
you’re planning to take advantage of the market this winter, let’s connect to
talk about the opportunities available in our local market.
Source: Real Estate with Keeping Current Matters