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2021 Real Estate Predictions



In January, everyone seems to want a prediction for the new year - will 2021 be a strong year in real estate? Let's take a look at what the national experts are saying...


"In 2021, I think rates will be similar or modestly higher, maybe 3%...So, mortgage rates will continue to be historically favorable."

- Lawrence Yun, Chief Economist, Association of Realtors (NAR)



"We expect sales to grow 7 percent and prices to rise another 5-7 percent on top of 2020's already high levels."

- Danielle Hale, Chief Economist, realtor.com



"With home builder confidence near record highs, we expect continued gains for single-family construction, albeit at a lower growth rate than in 2019. Some slowing of new home sales growth will occur due to the fact that a growing share of sales has come from homes that have not started construction. Nonetheless, buyer traffic will remain strong given favorable demographics, a shifting geography of housing demand to lower-density markets and historically low interest rates.”

- Robert Dietz, Senior Vice President and Chief Economist,

National Association of Home Builders (NAHB)



“Mortgage rates are expected to remain low for the foreseeable future and millennials will continue forming households, keeping demand robust, even if income growth moderates. Despite the best intentions of home builders to provide more housing supply, the big short in housing supply will continue into 2021 and likely keep house price appreciation flying high.”

- Mark Fleming, Chief Economist, First American


All the best,




Sources:

"Four Expert Views on the 2021 Housing Market". 1st Choice Lending Blog, 4 Jan. 2021, https://1stchoicelending.com/blog/f/four-expert-views-on-the-2021-housing-market. Accessed 10 Jan. 2021.


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