2021 is officially upon us. But how, exactly, is the new year shaping up through the lens of real estate?
Realtor's Insights Q4 2020 Report surveyed over 1,000 real estate agents for their insights into the 2021 housing market, including:
Lack of inventory will continue to pose challenges in 2021. A lack of homes for sale presented one of the biggest challenges for buyers in 2020—and at 20.5 percent, a continued lack of inventory is the factor most agents cited as their pick for the biggest influence on the 2021 housing market.
Remote work will continue to influence the real estate market. Low inventory will have a big impact on the market—but so will remote work. 14.5 percent of agents surveyed said the shift to remote work will have the biggest influence on the housing market in the upcoming year.
Low mortgage rates will continue to drive demand. A whopping 94 percent of agents surveyed said that low interest rates were boosting buyer demand in Q4 2020—and with most experts expecting mortgage rates to stay low through the end of the year (according to the report, Fannie Mae is expecting interest rates to stay around 2.8 percent while the Mortgage Bankers Association is forecasting a slight increase in rates to 3.3 percent), that demand should continue through 2021.
The Takeaway:
So, what does this mean for you? Real estate agents have their finger on the pulse of what’s happening in the market—so understanding their insights and predictions can help you better prepare to navigate the market in 2021, whether you’re planning to buy or sell.