Press release
Realtor.com® 2021 Housing Forecast: Sellers Will Get Top Dollar As Buyers Struggle with Affordability
- Home prices will reach new highs in 2021 as growth continues, but at a slower pace - The number of homes for sale will slowly rebound, offering buyers some
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[{"type":"text","content":"- Home prices will reach new highs in 2021 as growth continues, but at a slower pace\n - The number of homes for sale will slowly rebound, offering buyers some relief\n - Home sales will continue at a healthy pace as seasonality returns to the market\n - 2021 is full of wildcards including COVID-19 and the possibility of a double dip recession\n\n\nSANTA CLARA, Calif., Dec. 2, 2020 /PRNewswire/ -- Amid COVID-19 uncertainty, 2021 will be a robust sellers market as home prices hit new highs (+5.7%) and buyer competition remains strong, according to the realtor.com® 2021 housing forecast released today. Inventory is expected to make a slow but steady comeback, which will give buyers some relief. However, increasing interest rates and prices will make affordability a challenge throughout the year. \n\n \n \n \n \n \n \n\n \n\"The 2021 housing market will be much more 'normal' than the wild swings we saw in 2020. Buyers may finally have a better selection of homes to choose from later in the year, but will face a renewed challenge of affordability as prices stay high and mortgage rates rise,\" said realtor.com® Chief Economist, Danielle Hale. \"With less cash and no home equity, millennial and Gen Z first-time buyers will be impacted the most by rising home prices and interest rates. While waiting until the fall or winter months of 2021 may mean more home options to choose from, buyers who can find a home to buy earlier in the year will likely see lower prices and mortgage rates.\"\nRealtor.com® 2021 Housing Market Forecast\nMortgage Rates\nUp to 3.4% by year end \nExisting Home Median Price Appreciation\n+5.7%\nExisting Home Sales\n+7.0%\nSingle-Family Home Housing Starts\nUp 9%\nHomeownership Rate\n65.9%\nRealtor.com® forecasts mortgage rates will continue to hover near 3% then slowly rise to 3.4% by the end of the year. Home sales are expected to increase 7% and new construction will increase 9% over the previous year. However, the strength of the 2021 housing market is highly dependent on the containment of COVID-19 pandemic and staving off a double dip recession. \nWhat 2021 will be like for buyers?Buyers will find some relief in 2021 as more homes hit the market, but many will struggle with affordability as home prices continue to rise. Mortgage rates will slowly rise toward 3.4% and will no longer help offset the record breaki...