Buying a home: What to Expect in 2021
Buying a Home: What to expect in 2021
The market has been booming in 2020- with interest rates at an all time low. Most agents and homeowners actually had an easier time selling & buying than prior years. During the pandemic people have been finding more affordable living spaces and relocating.
Now what to expect for 2021? Now extended time at home is shaping how people live everyday and where they want to live beyond the pandemic.
In 2021, here are a few trends shaping for the housing market:
- Interest rates are expected to remain low but increase gradually.
- Average home prices will rise.
- Home inventory will remain low, despite plenty of new construction.
- Homebuyers will stay focused on the suburbs.
- Renters hurt financially by the pandemic will continue to struggle, and rental assistance is needed.
The housing market will continue to flourish during the start of 2021. Homebuyers should not be concerned about being able to find a home. Realtor.com predicts mortgage rates will end the year with an average around 3.4%.
The expected increase in home prices, however, may entice some owners to sell. With home prices closing out 2020 around 7.6% above the average home price at the end of 2019, realtor.com predicts 2021 will yield an additional 5.7% increase in home prices by the end of the year.
Are you looking to Buy or Sell? Call KBB today at 814-234-4000.
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