With rates dropping historically low, the spread of a global pandemic and a shift to remote working, 2020 provided a unique backdrop for certain wins in the housing market. With that being said, the housing market faces new challenges amid the wake of last year’s uncertainty as we head into the new year. What can we expect from the housing market this year? We’re taking a look at trends that are predicted to dominate the industry this year.
Interest Rates Will Remain Low
Last year, the housing market saw rates plummet to historic lows and it’s no surprise that 2021 will continue this trend. However, rates are expected to rise toward the end of the year. Looking ahead at the first half of the year, rates will continue to remain low and thus provide more opportunities for current homeowners to take advantage of a refinance or potential homeowners to secure their homes at an enticingly low rate.
Seller’s Market to Continue
Home prices and buyer competition will remain high in 2021, according to the Realtor.com 2021 housing forecast. Buyers will likely struggle with affordability as home prices will continue to rise throughout the year. Though we are currently in a seller’s market, there are still a few ways to get a leg up on the competition as a buyer which you can read about here.
Home Inventory to Steadily Rise
Last year, the pandemic altered the meaning of homeownership. A home quickly became a full-time workplace for some, a gym for others, a restaurant for all and so on – making it the place to be. This shift impacted the need to relocate and move into a new home in 2020, meaning inventory for new homes was low, but the number of buyers grew. The Realtor.com 2021 forecast expects an improvement in inventory into the spring of 2021 as the world begins to take steps to overcome the coronavirus.
The Return of Seasonal Buying
With an unconventional seasonal buying/selling pattern occurring last year due to the unpredictability of the pandemic, 2021 looks to settle into a more normal pattern. The housing market is expected to move into a stronger spring and summer season than 2020.
Become a Homeowner in 2021 with PrimeLending
There are plenty of benefits to becoming a homeowner in 2021, and we’re here to help you begin your homeownership journey. We work with our borrowers to find the right loan to fit their financial needs and homebuying goals. To get started, find your nearest PrimeLending branch location here: Find a Branch