This is what I predict will happen in our real estate market in 2021.
Today I’m providing your last 2020 real estate update and also sharing what we expect to see in 2021.
I predicted we’d have ghost inventory, and I’m now hearing more and more experts forecast this too. Many sellers say they’ve been waiting to sell because of the pandemic, but they’re feeling positive about a vaccine and will likely sell next year. We don’t yet know exactly how high inventory will rise, but we predict it will increase in 2021, giving those buyers who are desperately looking for a home more options. I believe we’ll still have an imbalance of buyers and sellers, and prices will continue to climb, but at a slower rate.
It’s still an excellent time to sell a house—interest rates are expected to stay low, even with the presidential switch. Luckily for buyers, since inventory is so low, mortgage rates are also at historic lows. If interest rates inch up and supply doesn’t improve, we’ll be in a bit of trouble because buyers will not be able to afford the increasing valuations of homes. So keep an eye out for that possibility.
If you have any questions about our market or real estate in general, please reach out via phone or email. We look forward to working with you soon.