2020 has been anything but typical – and not necessarily in a good way. But one thing is for certain: the housing market has been booming in recent months due to high buyer demand. After a dip in real estate transactions due to the initial COVID-19 outbreak, buyers came out of the woodwork to quickly snatch up the slim inventory of homes on the market. Will this trend continue? What will Washington housing market look like in 2021?
1. Home Values Continue to Rise in Seattle and Surrounding Areas.
Zillow has some compelling data to be aware of as we head into 2021. Over the past year home values have gone up 12.6%, and are expected to rise by another 8.5% in the next twelve months.
2. There won’t Be A Housing Market Crash in Washington in 2021.
The Housing Market Recovery Index from Realtor.com shows that the area is coming back from the unavoidable decline earlier this year. This index factors in supply, housing demand, prices and the pace of sales on a weekly basis. The benchmark for recovery happened in July, it points to how the state is recovering from COVID-19. Experts do not anticipate a crash in 2021 based on the data.
3. Home Sales Will Likely Surge for 2021.
Realtor.com’s 2021 Housing Forecast predicts home sales to increase 11.4% from 2020. This is the eleventh largest expected increase among the 100 top metro areas in the United States, making it one of the hottest housing markets in the nation for 2021. This could present a challenge for buyers as affordability dwindles. Having a top buyer’s agent can help buyers get the property they are looking for at the best possible price.
4. Interest Rates Could Start to Rise in 2021.
Undoubtedly, this year’s record-low interest rates were a contributing factor in the real estate market, and they continue to help boost sales. However, lenders are requiring higher credit scores due to the current economic uncertainties. Also, lenders predict that interest rates will creep up to 3.3% by this time next year and could go even higher. More stringent lending requirements, coupled with slightly higher interest rates, could have an impact on the real estate market.
As always for personal information on this or any other real estate subjects give me a call or email: Penny@TheOriginalPenny.com 206 618 5123
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