What Will the 2021 Housing Market Look Like?
What Will the 2021 Housing Market Look Like?
The decline in inventory and historically low interest rates created quite the market bubble for 2020. Most homes seeing multiple offers within days of hitting the market. Despite the current record-high prices home values are expected to rise an additional 7% over the course of 2021. Mortgage rates are expected to slowly increase but as buyer demand maintains for the low pool of housing inventory, home values can continue to increase.
What Does This Mean For 1st Time Homebuyers?
There is expected to be an increase in Millenials’ entering the market this year. However, the increased home values create a constant barrier to entry, particularly in Ventura County. There is expected to be a slight increase in inventory expected closer to the end of 2021 and with a slow and steady increase in mortgage rates it will likely create an environment that is friendlier to the first-time homebuyer. Our team has helped countless first time homebuyers enter the market and would be happy to help you formulate the best strategy.
COVID-19 and Home Sales
The evolving situation with COVID-19 changed the way people are buying and selling homes in the year 2020 and those changes will likely continue throughout most of 2021. For example, in our area open houses are suspended indefinitely. More people are signing edocuments than ever and even buying homes sight unseen! However, it’s created an efficient process that eliminates unnecessary showings and “looky-loos” that sellers dread.
Overall 2021 Housing Market Predictions
While no one is certain how the real estate market will pan out you can realistically expect it to maintain a seller’s market for the first half of 2021. Interest rates will maintain low rates but steadily increase throughout the course of the year. First time homebuyers should closely evaluate the market for any changes and consult with a trusted real estate professional in order to help make their way into the market. As always if you are ready to make your real estate dreams come true this year our team is happy to help advise you on the best decisions!
