It's that time of the year again! Here are our Top 10 predictions for real estate for 2021. Despite a rollercoaster year, real estate's performance has been nothing short of remarkable. In fact, many of last year's predictions for 2020 still came true in spite of the pandemic. In this 4 part Blog we'll cover the Bold Predictions ahead:
Let's take a look at where things are expected to go in the New Year ahead. Although you've been hearing about historic lows all year already, the same is likely to be true in the new year ahead. According to Freddie Mac, The National Association of Realtors® (NAR), and other reputable sources, rates for a 30-year mortgage are forecasted to hover around 3.075% in 2021 (compared to 3.125% this year).1 Fannie Mae has their prediction for a 30-year fixed even lower, at 2.7% for the year.2Another forecast from Freddie Mac, the NAR, and so on expects the price of existing homes to increase another 2.7%. However, one potential downside to this is that first-time homebuyers may be put at a further disadvantage when looking for options within their budget.
Overall, more than six million homes are expected to be sold in 2021 (a 4.7% increase over this year). Put another way, Fannie Mae estimates purchases and refinancing to reach a combined $3.47 trillion in volume.3Due to the pandemic, many people set their sights on the suburbs in the pursuit of more “socially distanced" living conditions. However, there's an anticipated shift back to city living as vaccines become more widely available (combined with the hope that local economies and job markets will begin to flourish once again.
