Looking Forward
What will the real estate market look like in 2021? Experts are forecasting that 2021 is one in which we can be optimistic about real estate. A recent article with Keeping Current Matters offers three key reasons.
- The Economy Is Expected to Continue Improving
One example comes from Morgan Stanley (https://www.morganstanley.com/ideas/global-economic-outlook-2021):
“In their 2021 outlook, the economics team at Morgan Stanley Research says the V-shaped recovery that the team forecast in their 2020 midyear outlook is now entering a new self-sustaining phase and is on track to deliver 6.4% GDP growth in the coming year.”
- Interest Rates Are Projected to Stay Low
In the latest projections from Freddie Mac, interest rates for a 30-year fixed-rate mortgage are expected to remain at or near 3% in 2021. These low rates will continue to make homes more affordable, driving demand for housing in 2021.
- Future Home Sales Are Forecasted to Grow
While the economy improves and interest rates remain low, homes are also expected to continue appreciating as more people buy in the coming year. Danielle Hale, Chief Economist at realtor.com, says:
“We expect home sales in 2021 to come in 7.0% above 2020 levels, following a more normal seasonal trend and building momentum through the spring and sustaining the pace in the second half of the year.”
Each month, ShowingTime releases their Showing Index which tracks the average number of appointments received on active U.S. house listings. The December 2020 index noted:
“The Showing Index reported a 60.9 percent jump in nationwide showing traffic year over year in October [with the West at 64.7%], the sixth consecutive month to see an increase over last year.”
Experts forecast that buyers and sellers are going to be active in 2021. There are first-time, move-up, and move-down buyers actively looking for the home of their dreams this winter. If you are thinking of selling your house in 2021, you don’t need to wait until the spring to do it. Your potential buyer is very likely searching for a home in your neighborhood right now!
Debbie Austin is a realtor associate with Keller Williams, Roseville and has been helping clients buy and sell property in the area for 16 years. If you have a specific real estate question you wish to see addressed, contact Debbie at debbieaustin@kw.com or debbieaustingroup.com.
