With 2020 in the rearview mirror, what’s in store for the real estate market in 2021?
Strong demand and more homes hitting the market in 2021 will mean a healthy rate of growth for 2021. Expect seasonal trends to normalize with a strong spring/summer and slower fall/winter season. While the heated home price growth of 2020 might simmer down in 2021, home prices are still expected to rise. Mortgage rates are at historic lows, which has helped builders and developers finance their projects. As a result, experts are predicting that more new homes will be built in 2021 than in any year since 2006. And last but not least: major migrations are still on the move in 2021. Remote work, which set off a domino effect of increased homeownership in 2020, will continue to drive buyers from high-cost cities to suburban and rural areas with lower-cost housing.