Here’s what experts predict about our 2021 real estate market.
Where is our real estate market headed as we close out 2020 and look toward 2021? National data puts homes’ year-over-year appreciation rate at about 6%, and throughout 2020, our local market has reflected this trend. Many experts (who I agree with) predict that the appreciation rate will drop to between 1% and 1.5% in 2021. The main reason is that supply is expected to increase.
Why is supply expected to increase? Two segments of the seller population are waiting until next year to take action. The first includes the folks who weren’t comfortable listing in 2020 due to COVID and are waiting to see how the vaccine situation plays out. The second includes retirement-age sellers who want to downsize but can’t at the moment because they’re the most at risk for developing severe illness due to COVID.
“Many experts (who I agree with) predict that the appreciation rate will drop to 1% to 1.5% in 2021.”
This makes now the best time for you to sell. Supply is low, demand is high, and even if the appreciation rate drops before 2021, it’s still a great opportunity compared to where our market has been.
If you’re thinking of selling or have any questions about our real estate market, don’t hesitate to reach out to me. I’d love to help you.