Key points:
- Despite a year of uncertainty, experts say that the 2021 real estate forecast is a cause for optimism.
- Continued economic improvement, low interest rates, and growing home sales will help to keep the housing market strong in 2021.
- Home buyers and sellers will be active in the coming year. If you’re thinking about making a move in the Triangle, Linda Craft & Team is here to help.
3 Key Factors Bringing Optimism to the 2021 Real Estate Forecast
This past year brought unprecedented changes and frightening economic instability to everyday life. But in spite of this volatility, the housing market has seen tremendous increases in home values. Thanks to steady buyer demand, the 2021 real estate forecast is expected to bring more growth and activity. Here’s why.
The economy is expected to continue improving
It’s important to understand that the economic downturn of early 2020 was not caused by any particular issue with the economy itself; unlike in 2008, there was no “bubble” creating excess financial activity. This year’s collapse was a direct result of uncertainty surrounding the pandemic. And though there has been an increase in COVID-19 cases in recent weeks, the economy has continued to improve.
Interest rates are projected to stay low
Interest rates were one of the main driving factors behind 2020’s housing market growth. Rates reached several all-time lows throughout the year, presenting opportunities to buyers previously priced out of the market. Freddie Mac predicts that interest rates will remain near 3% throughout most of 2021. For buyers, low interest rates mean thousands of dollars in savings on a home purchase.
Future home sales are forecasted to grow
As the economy improves and buyers continue to purchase, home values and sales are expected to increase as well. Economists at Realtor.com predict that home sales in 2021 will increase another 7% above 2020 levels. Unlike 2020, this coming year should follow more normal seasonal trends, with a hot spring market and a slowdown going into fall and winter.
Bottom Line: 2021 Will Be a Great Year to Make a Move
If you’re thinking about buying or selling a home in the coming year, rest assured that the market should be favorable to both buyers and sellers. Ready to make a move? Contact Linda Craft & Team today at 919-235-0007 to learn more about how we can put our 350+ years of combined experience to work for you and your goals.