As we enter the first part of 2021, I am sure we can all agree… 2020 was definitely a confusing year for many. However the real estate market remained strong and continues to do so through the pandemic. A huge part of this is due to supply, as inventory across the U.S. remains low and buyer demand is continuing to increase.
I have heard a few different predictions regarding the 2021 real estate market from clients, family, or strangers in passing. With that said it seems there are a few different theories floating around. Some of these theories might be fueled by past experiences or other beliefs. However I always turn to the current trends along with the data for answers.
- The market is forever changing, however what you can expect to see currently is inventory to slightly increase in some areas over the next several months. With supply still so low we may not feel a huge difference. Although this will ideally give some home buyers a little more relief in being able to nail down the home they love.
- Home prices are expected to remain strong primarily due to supply and demand. We will likely see a slight increase over the year but this should not be drastic.
- Good news for buyers, as interest rates are expected to remain very low. Giving home buyers a bit more purchase power when financing!
- I have heard some talk about an increase in foreclosures. However the majority of home owners currently have a great amount of equity in their home. With that said there would be no reason to see an increase in foreclosures. With supply currently low, demand high, and property values increasing these factors just simply do not equate to an increase in foreclosures.
These are just some highlights and bullet points. As always feel free to reach out for more specific details or with any questions you have. As I am honored to be your resource and Realtor when needed.