Will Home Prices Drop In 2021?
Definition of "Will home prices drop in 2021?"
Understanding housing market trends can be helpful for investment perspectives but also for homebuyers who want to know if it is the right time to buy a home or wait for prices to drop. Keep in mind that predictions are not 100% accurate, but experts can make some good guesses about the housing market’s future with a certain degree of error. Either you are a real estate investor, a home buyer who wants to purchase for the best prices, or a home seller who wants to get the most value out of their property, here is what you need to know about the real estate trends of 2021. Will home prices drop in 2021? Will we experience a housing market crash in 2021? Let’s find out!
Can we expect depreciation in home prices in 2021? Quite the opposite! According to experts, the housing market of 2021 could be a blast, and many expect a post-pandemic rebound. In other words, we can expect to see steady mortgage rates, job recovery, and a balanced supply and demand that will make home sales go wild and prices increase. At the beginning of 2020, there were many unknowns with the pandemic outbreak, and many home buyers and sellers were hesitant to close at the time.
However, with the rise of remote workers, real estate agents had a whole year to adopt ways to go about the home selling process during the pandemic while respecting social distancing guidelines. With that in mind, many predict a significant property appreciation where the numbers indicate an increase of about 10% in home prices, a 21% increase in newly built home sales, and a 9% increase in existing home sales. With these price trends, many investors weigh the pros and cons of new vs old homes for their long-term investments.
According to experts, there are currently about 22 piping hot housing markets, and the rest of them are pretty strong compared to the previous year. On the other hand, the amount of homes listed for sale has gone down by 22% compared to last year, for both older and newer homes. Before the year 2021, existing homes were typically on the market for about 21 days, which means they would sell almost two weeks faster than a year ago.
It’s not all good news since inventory is running low at a rapid pace, and projections show that 2021 might bring about the highest rate of foreclosure the country has ever seen. These projections are primarily based on job losses connected to the pandemic. If that is you, hang in there. There are a couple of steps you can take to avoid foreclosure, and you can always reach out to local real estate agents who might be able to help you downsize and pay off your mortgage.
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