WOW! We survived 2020! This year will be remembered for many different reasons, (global pandemic, economic fear, and natural disasters just to name a few) but optimism won’t be one of them. Luckily, this blog post IS centered around optimism! Experts are suggesting that the real estate world will be extremely good in 2021. Check out why below!
1- The Economy is Forecasted to Continue to Improve
According to Tim Duy, an economic expert and professor from the University of Oregon, “There is nothing fundamentally ‘broken’ in the economy that needs to heal…there was no obvious financial bubble driving excessive activity in any one economic sector when the pandemic hit…With Covid-19 cases surging again, it is understandably hard to look optimistically to the other side of this winter…Don’t let the near-term challenges distract from the economic stage being set for next four years.”
2- Interest Rates Are Projected to Stay Low
Thanks to the low interest rates we have enjoyed this year, homes are more affordable than ever! Expect similar outcomes in 2021, which is predicted by Freddie Mac. Interest rates for a 30-year fixed mortgage are expected to remain as low as 3% in 2021.
3- 2021 Home Sales are Growing
Danielle Hale, Chief Economist at realtor.com, forecasts that “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.”
So, with the economy improving and interest rates low and home sales to grow, 2021 has already given us something to look forward to!