While the year 2020 has been such a blast, and we know many of you will be sad to put the year behind us, 2021 is fast approaching; the days of a COVID-crippled economy are coming to an end. Oddly, this red-hot housing market doesn’t look like it will cool off despite the projected return to normalcy.
According to Realtor’s 2021 housing forecast, housing prices will continue to climb. Much like the elevator at the end of Willy Wonka, these through the roof housing prices are just going to continue going up. This doesn’t bode well for first-time buyers and people of average income; the record low mortgage rates are expected to tick up over the next year as well; with most experts predicting 3.4% by the end of 2021 (making already expensive homes even more expensive by virtue of interest on the massive loans they were required to take out to purchase the expensive home in the first place).
While the rate of growth won’t be as drastic in 2021, economists expect housing prices to increase by approximately 5.7% next year (as opposed to double-digit increases in 2020), especially by the 2nd half of 2021.
2021 is not filled with bad news for prospective buyers, as most experts believe a significant amount of inventory will become available next year; this will provide more options, and potentially cool the market off just a little (don’t worry sellers, you’re still going to be doing very well). At the end of the day, let’s be grateful that we’re putting 2020 in our rearview, and that against all odds, the housing market remained robust through a crisis.
At the Chernov Team we understand that knowledge is power, and knowledge of how the market will behave is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.