Predictions for the 2021 Real Estate Market
If you’re hoping to buy or sell a home in 2021 here are some things to keep in mind.
While the COVID-19 pandemic has changed nearly every aspect of our lives, one surprising outcome of these uncertain times is the strength of the real estate market. Though the sector was understandably slow in the spring, home sales have now grown for five consecutive months.
A surprisingly busy real estate market is good news for sellers, in particular, but will this trend last into the new year? Here are our predictions for what the housing scene may look like in 2021:
Sales will continue to grow
If you're looking to sell a home in the new year, expect your property to be snatched up quickly. The National Association of Realtors explained that a combination of stable interest rates, talk of a COVID-19 vaccine and recent homebuying trends means existing-home sales could rise by 10% in 2021.
Next year will be a great time to sell an existing property. Homes are on the market for mere weeks before being purchased. In especially hot markets, like Denver, such competition means sellers can likely get more than their initial asking price.
Finding an existing home for sale may be difficult in a competitive market.
There could be a housing shortage
However, as good as this trend is for sellers, it means buyers say it's increasingly more difficult to find an affordable home for sale. The events of 2020 have created a perfect storm for this highly competitive market to occur. The start of the pandemic meant construction of new homes abruptly stopped. Then, as people realized they would be working from home for the foreseeable future, many began purchasing properties with more space to settle into.
Bloomberg highlighted that with the pace of home sales and the dwindling number of new and existing houses, it would only take 3.3 months to exhaust the current supply . While it may be more difficult for buyers to find existing homes for sale, they can take advantage of reliably low interest rates to offset some of the higher upfront costs.
A stable but competitive market
Overall, both buyers and sellers can expect the real estate market to continue to grow at a steady rate in 2021. This stability is ideal for both parties, as it makes the sales process less stressful for all involved even though the market is competitive. If moving is part of your plan for the new year, keep this information in mind as it will help you make the best decision for your future.
When you need to find a home loan that works for you and your goals for 2021, Vectra Bank is here to help. Our financial experts take the time to understand your circumstances and goals to find the right loan option for you.
Contact your local Vectra Bank representative today for more information on our home loan options.
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