Sellers will get top dollar as buyers will struggle with affordability. This appears to be the primary message for the 2021 housing market at least through the summer housing market in 2021. Of course, it’s not very different from what we experienced throughout the second half of 2020.
Experts predict that the housing market’s spring and summer seasons will be strong and possibly level off somewhat in the fall and winter of 2021. Home prices will continue to set records as inventory remains tight. Throughout 2020, buyers were able to offset increasing home prices with historically low interest rates, which hit new lows 15 times during the year. However, if interest rates increase by end of year as predicted, there will be pressure on many buyers for home affordability. The “wild cards” with respect to what actually happens in the 2021 housing market versus predictions today, include continued impact on the economy and employment related to COVID. At the very least, it makes sense to purchase a home sooner rather than later — before home price increase further and while interest rates remain at historic lows.
If you’re planning to sell your house in the near term, it’s a great market in which to do it. On the other hand, whether you’re a first-time or repeat buyer, the 2021 predictions may seem like troubling news. Home buyers, however, should realize that the price of a house is not as important as the monthly carrying cost of a home.