home percent update

2021 Market Expectations

By Kelly Leighton on 1/3/2021

The 2021 housing market should resemble a return to normalcy, Realtor.com predicts.

Home sales are forecasted to be 7% higher than 2020, with a strong spring and summer and a less-busy fall and winter, unlike 2020. While inventory will still remain an issue, it is expected that there will be more properties on the market and the gap between demand and availability will begin to shrink. 
Affordability may remain an issue for 2021. Mortgage rates, which reached historic lows in 2020, will rise, but still remain reasonable. It is expected they will average 3.2% for most of the year, before increasing to 3.4% by the close of 2021. Home prices are also expected to see a jump. Year-to-year, home prices may go up 5.7%.
Millennials and Generation Z members are expected to influence the housing market as well, as some older millennials may be ready to shift to a larger house, freeing up their starter homes for younger millennials and the
Generation Z members who want to purchase their first home.

While 2020 taught us that nothing is predictable, barring any unforeseen circumstances, 2021 will remain a good market for sellers, while buyers will see more favorable conditions than 2020 due to an increase in available inventory.

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