If the events of 2020 kept you from pursuing your goal of buying a house, the arrival of a brand new year will give you a good reason to revisit your plans. Here’s how the homebuying market is projected to look in 2021.
Home sales will bounce back in a big way
Realtor.com predicts that 2021 will welcome the return of active homebuying markets across the United States. The new year is projected to enjoy a healthy growth of up to 7% in home sales, following a pandemic-riddled year that struggled with low inventory, competitive bidding wars, and increasing house prices.
Home prices will continue to rise but at a slower pace
It will be important to double-check how much you can afford to spend on a new house next year because prices are expected to continue on their upward trajectory from 2020. Home prices in 2021 are projected to finish at 5.7% higher than 2020 prices, albeit with a slower rate of increase compared to this year.
Low interest rates
The good news for aspiring homebuyers is that mortgage rates are expected to remain in the low to mid-3%, easing the financial burden of increasing home prices. Mortgage rates are projected to average 3.2% throughout 2021, finishing at 3.4% by the end of the year, according to the Realtor.com forecast.
Inventory is likely to increase
Another notable change that buyers can look forward to is an improvement in the range of options available on the market. While the pandemic caused many homeowners to postpone their selling plans in 2020, confidence in the successful conduct of real estate transactions is returning, giving homebuyers more listings to choose from. New construction will also expand the inventory as building projects have already resumed.
Seasonal buying will return
The unforeseen coronavirus outbreak largely derailed the expected peak seasons of home buying, such as spring and summer. Barring any unforeseen escalation of the COVID-19 situation, homebuyers can anticipate a more normal seasonal pattern in real estate market activity in 2021.
Many house tours will still be done virtually
In 2020, the real estate industry adapted to the pandemic by embracing technologically-assisted alternatives to common home buying and selling processes. With the coronavirus still posing a threat to public health, virtual alternatives to in-person meetings will continue to play a key role in the conduct of real estate deals.
The pandemic could still throw a wrench into everyone’s plans
Data-based forecasts and expert analyses aside, the reality is that the pandemic will continue to cast an environment of uncertainty in public health and the economy until COVID-19 is completely eliminated.
You’re still most likely to succeed working with an agent
Regardless of how the pandemic situation develops, you can still pursue your homebuying goals with confidence as long as you work with a reputable local real estate agent. Combining their in-depth expertise in real estate processes, local market data and insights, and compliance with standard health and safety protocols, your agent will make sure that your entire home buying experience is satisfying and rewarding.
Ready to explore the Colorado real estate market for your next dream home? The local area specialists of The Noel Team are eager to lend a helping hand. Contact our team at 303.774.9400, send an email to sjnoel(at)remax(dotted)net, or leave us a message here.
