2020 was a unique year, to say the least. Although many people struggled with a loss of income and other challenges, the real estate market remained relatively stable across the nation. Although the arrival of the coronavirus in March of 2020 led to drops in real estate values, September saw evidence of a recovery with higher median home prices and fewer days spent on the market. According to real estate predictions, 2021 should continue this trend with a seller’s market that includes rising prices and low inventory.
Although the pandemic still isn’t fully controlled in many parts of the U.S., economies have started to open up across the nation, resulting in an increased need for housing. Fall of 2020 brought an explosion to the real estate market, compounded by historically low mortgage rates that buyers were eager to take advantage of. According to Fannie Mae’s report released in June, mortgage rates are predicted to remain low, potentially just below 3%. Low mortgage rates contribute to an increase in home sales as the demand continues to rise.
The availability of the coronavirus vaccine will likely play a role in the housing market, as it will hopefully contain the pandemic and bring more economic stability. If the vaccine is successful in controlling the virus, mortgage rates may go back up. However, this doesn’t necessarily mean that the market will shift to a buyer’s market. In fact, the demand will likely continue to rise, and the inventory shortage is not likely to be resolved in the near future.
If you’re planning to sell your home, 2021 could be a great year to do so. A seller’s market can help you get a higher price for your home, helping you to capitalize on your investment.
Sources: Mashvisor.com, Forbes.com, Kiplinger.com
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