The National Association of Realtors issued their forecast for 2021,
Realtor.com 2021 Forecast for Key Housing Indicators
| Housing Indicator | Realtor.com 2021 Forecast | |||
| Mortgage Rates | Average 3.2% throughout the year, 3.4% by end of year | |||
| Existing Home Median Sales Price Appreciation | Up 5.7% | |||
| Existing Home Sales | Up 7.0% | |||
| Single-Family Home Housing Starts | Up 9% | |||
| Homeownership Rate | 65.9% |
They stated:
“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. While home sales are expected to lose some momentum over the last months of 2020, the shallower than normal seasonal slowdown creates a higher base of activity leading into 2021 that is roughly maintained for the first half of the year. As vaccines for the coronavirus become broadly available to the public, and economic growth reflects the resumption of more normal patterns of consumer spending, home sales gain even more in the second half of the year.”
“We expect home prices in 2020 to end 7.6% above 2019, after a seeing near record high boost in the summer and early fall, but beginning to decelerate into the holidays. From there, we expect price gains to ease somewhat in 2021 and end 5.7% above 2020 levels, decelerating steadily through the spring and summer, and then gradually reaccelerating toward the end of the year.”
2021 TRENDS: Millennials & Gen Z
“The largest generation in history, Millennials will continue to shape the housing market as they become an even larger player. The oldest Millennials will turn 40 in 2021 while the younger end of the generation will turn 25. Older Millennials will be trade-up buyers with many having owned their first homes long enough to see substantial equity gains, while the larger, younger segment of the generation age into key years for first-time homebuying. At the same time, Gen Z buyers, who are 24 and younger in 2021, will continue their early foray into the housing market.”
To read the entire post, click here.