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2021 Housing Market Predictions

A HOME SOLD sign stands before a house, framed by two hands.
 
2021 housing forecast: experts forecast an optimistic year for the housing market.
 
Experts are optimistic that the housing market will continue to remain very active. Interest rates remain very low in comparison with pre-pandemic years, fueling urgency among buyers.
 
  • Prediction 1: 2021, in general, will see a positive increase in the economy. The unemployment rate is expected to fall and personal income on the rise.

  • Prediction 2: Buyer demand on the increase. Consumer confidence as the economy stabilizes will bring out more first-time home buyers and increase competition to secure a home.

  • Prediction 3: Historically low mortgage interest rates. Buyers will want to get the most bang for their buck! Low rates strengthen buying power.
Infographic comparing projected 2021 mortgage rates with historic rates by decade.
 
Chart comparing 2020 home sales with 2021 forecasts from Fannie Mae, Freddie Mac, MBA, and NAR.
 
  • Prediction 4: Supply remains low and demand is high. It’s still a seller’s market. The number of homes available on the market for buyers wanting to purchase is low. A competitive market continues to push prices up to secure a home. If you have been on the fence about selling, it’s time to make your move.
2021 home price forecasts: Fannie Mae 2.1%, Freddie Mac 2.6%, MBA 2.0%, and NAR 6.0%.
 
  • Prediction 5: Buyers looking for more space will continue to grow. Single-family homes are also serving as a workplace, home, school, gym, and more! Outdoor space for play and gathering is in high demand, making suburban and rural areas very desirable.
If you want to learn your home’s value in today’s market, give Becky a call (636) 326-2290. No-obligation for this free evaluation.

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