What to Expect from 2021 in the Real Estate Market
2020 was a year where we all learned everything could change in an instant and to expect the unexpected. In 2021 we’re all looking for any sense of normalcy we can find. So will the real estate market experience any changes in 2021?
According to research by property analytics firm CoreLogic, national home prices hit a six-year high in September with a year-over-year increase of 6.7%. In Washington, DC the average sold price was up 8.56% in the 3rd quarter of 2020 according to SmartCharts.
It’s possible we’ll see slower economic growth by next September and that could result in lower asking prices for home sales. 2020 led many people who were thinking of selling to wait and see what happened. So many people staying at home for health and safety reasons meant people needed to be in their homes and the idea of moving during a pandemic was unappealing to say the least. As we see the Covid-19 vaccine rolled out we could see an increase in housing inventory in spring 2021 could increase. Both of these variables could flatten housing price growth, but only time will tell. It’s impossible to time the market perfectly but if you’re thinking of buying or selling this year, taking the time to be prepared now is key.
Many construction projects ended up on hold. in 2020. As more people receive the Covid-19 vaccine this should start to change. Housing starts began picking up in October, which could also lead to an increase in housing inventory. If you’re interested in purchasing new construction it’s a good time to familiarize yourself with projects in your area and learn about their completion timelines.
A virtual workforce is going to become much more common for many companies. Time will tell what this means for cities, shopping areas, downtowns, and the way we live in our communities. We’re seeing renewed popularityThe remote workforce also has changed what potential buyers are looking for in a home. Now, home offices are a must, space for virtual school is needed, and high speed internet is more important than ever.
Interest Rates will stay historically low in 2021. Bankrate expects rates could fall even lower in early 2021 but will end the year around 3%. Low interest rates means buyers will keep their strong purchasing power.
Have questions about buying or selling your home? Want to talk more about the market? Drop me an email at Kerri@BestAddress.com
