2020 was not the best year by far. It did have a few bright spots. One of those areas was the housing market. Home sales surged, prices soared to all-time highs, and mortgage rates remained at all-time lows. What does 2021 have in store?
2021 will offer us more of the same, with a few small changes. Mortgage rates will remain relatively low, but we will see them rise a bit to the low 3's. You will need more of a down payment to purchase that home though, due to higher home prices.
Home sales will surge to all-time highs. More people will own a home this year. People are leaving the big cities and high taxed states for less dense areas and cheaper land. This in turn will keep the demand for homes high, as the inventory will still remain low. Home builders are catching up, but they lost about 9 months due to the pandemic.
This Spring, we will see a surge in home sales, as people will look for more space and have begun to get more comfortable with touring homes virtually. People are more likely to buy a home they never seen in person.
New construction homes will gain in popularity, due to home prices being high to begin with, many home buyers will just buy new. Affordability will be a concern for some. Home prices will continue to rise, maybe not at the rate of last year, but they will increase around 3%-6%.