Virginia Gardner

Back To Blog

3 Reasons to Be Optimistic about Real Estate in 2021

3 Reasons to Be Optimistic about Real Estate in 2021 | Simplifying The Market

This year will be remembered for many reasons, and optimism is one thing thats been in short supply since the spring. Were experiencing a global pandemic, social unrest, an economic downturn, and natural disasters, just to name a few. The challenges brought on by the health crisis have also forced many homeowners to reevaluate their space and what they need in a home going into 2021. So, experts are forecasting that next year is one in which we can be optimistic about real estate for three key reasons.

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 healthere was no obvious financial bubble driving excessive activity in any one economic sector when the pandemic hitWith Covid-19 cases surging again, it is understandably hard to look optimistically to the other side of this winterDont 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 Reasons to Be Optimistic about Real Estate in 2021 | Simplifying The Market

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.

Bottom Line

Experts forecast that buyers and sellers are going to be active in 2021. If youve thought about buying or selling your home this year but have held off, now may be the time to take advantage of this market. Lets connect to take the first step toward your new home today.

Add Comment

Comments are moderated. Please be patient if your comment does not appear immediately. Thank you.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Comments

  1. No comments. Be the first to comment.