3 Reasons to Be Optimistic about Real Estate in 2021
The year 2020 will be remembered for many reasons, and there has been a shortage of optimism since the spring. We’re experiencing a global pandemic, social unrest, an economic downturn, and natural disasters, just to name a few. At the start of 2021, the challenges stemming from the health crisis has induced many homeowners to reevaluate their space and what they need in a home. After listening to experts give forecasts for this year... we will list for you three key reasons to be optimistic about real estate!
1. The Economy Is Expected to Continue Improving
Tim Duy from the University of Oregon puts it this way:
“There is nothing fundamentally ‘broken’ in the economy that needs to heal…there was no obvious financial bubble driving excessive activity in any one economic sector when the pandemic hit…With Covid-19 cases surging again, it is understandably hard to look optimistically to the other side of this winter…Don’t let the near-term challenges distract from the economic stage being set for next four years.”
2. Interest Rates Are Projected to Stay Low
In the latest projections from Freddie Mac, interest rates for a 30-year fixed-rate mortgage are expected to remain at or near 3% next year. These low rates will continue to make homes more affordable, driving demand for housing in 2021.
3. Future Home Sales Are Forecasted to Grow
While the economy improves and interest rates remain low, homes are also expected to continue appreciating as more people buy in the coming year. Danielle Hale, Chief Economist at realtor.com, says:
“We expect home sales in 2021 to come in 7.0% above 2020 levels, following a more normal seasonal trend and building momentum through the spring and sustaining the pace in the second half of the year.”
According to experts, 2021 will have incredible activity for both buyers AND sellers! If you’ve thought about buying or selling your home, but recently decided to hold off... now may be the perfect time to take advantage of this growing market. Reach out to a local real estate expert for professional guidance regarding all of the important steps required in buying or selling a home. ~ Real Advantage Partners team