2021 Housing Market, What to Expect.

As we all know, the world we knew previously drastically changed in March of 2020. Covid hit and completely turned the planet upside down. The housing market came to a brief halt as we waited to become essential, and could continue to work. Although there was a minor set back, 2020 ended up being a record breaking year in residential real estate. Housing prices have remained at their highest throughout the year and continue to hold strong. 

Even though hundreds of thousands were laid off, that did not slow down the housing market. Extremely low and attractive interest rates are incentive enough. With a change in needs a lot of families are realizing they need either a larger home or a space with an office. 

The number of homes for sale has plummeted from previous years. In Berks county alone there are only 425 homes on the market as of today. Needless to say supply is LOW. With historically low interest rates, it is also a very appealing time for buyers, BUT with a lack of inventory we are seeing home prices skyrocket. It is your classic supply and demand lesson from high school. 

So what does this mean? 

It looks like the housing market is going to remain strong in 2021. Home prices are going to remain high. A report from the Federal Reserve Bank of New York found that the median household expects to increase their spending by 3.7% in the next twelve months. 

Now, with that being said, experts are predicting that rates will start to creep up slowly and with housing prices remaining high this will slowly start eliminating buyers who are able to afford purchasing due to affordability. Meaning, if you are on the fence about selling your home... now may be the best time to get top dollar before the market starts to shift. 

Robert Dietz, the senior vice president and chief economist for the National Association of Home Builders stated (and I am paraphrasing) that due to set backs and delays, residential construction has taken a hit. Supplying issues has been a huge cause of this, waiting for materials to be delivered, labor shortages, and cost concerns has impacted the building of new homes. 

According to Danielle Hale, with realtor.com, they expect sales to rise another 7% thorough 2021. So the market is definitely not slowing down and looks to remain strong through this year. 

So, in doing a lot of research and reading, it is safe to say that 2021 is going to be a strong real estate market. What do you think about what is happening with our current market? Are you a buyer and going to be taking advantage of the amazing rates? Or a seller who is going to capitalize on high sale prices? I would love to know! 

Information pulled from: 

from Forbes