What to Expect from the 2021 Housing Market

By PrimeLending, a PlainsCapital Company. (NMLS: 13649) on 2/18/2021

Between historically low rates, a global pandemic and a shift to remote working, 2020 was an unprecedented year for most industries, including housing. Considering this, the housing market is prepared to face 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 in 2021? Check out some of the top trends to keep in mind if you are looking to make a move this year.

Low Interest Rates Will Continue

Last year, the housing market saw rates plummet to historic lows, so it’s no surprise that we will still see low rates in 2021. 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.

A Market Favoring Sellers

Home prices and buyer competition will remain fierce in 2021, according to the Realtor.com 2021 housing forecast. Affordability may become an issue for buyers 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.

Increase in Home Inventory

Last year, the pandemic redefined 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 evolution largely drove 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 Reemergence 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 traditional pattern. The housing market is expected to move into a stronger spring and summer season than 2020.

 Learn more: https://lo.primelending.com/ccrossan/

All loans subject to credit approval. Rates and fees subject to change. ©2021 PrimeLending, a PlainsCapital Company. (NMLS: 13649) Equal Housing Lender.

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