Sellers Likely to Keep Market Advantage Next Year

Dated: December 8 2020

Views: 39

Buyer competition remains strong, and low inventory is pushing home prices to new highs—so sellers are likely to keep their market advantage next year, according to realtor.com®’s 2021 housing forecast. Home price growth may slow but will continue an upward trend, along with property appreciation for sellers, realtor.com® predicts.

 

The forecast notes that housing affordability is likely to worsen: “Buyers in 2020 received a huge boost in affordability as mortgage rates pushed to new lows throughout the year. However, a lack of inventory and strong demand drove prices up, erasing most of the boost,” realtor.com® notes. “As mortgage rates are no longer able to counteract rising home prices, affordability will be tested for buyers across the board in 2021.”

 

Housing shortages will largely continue to persist, though realtor.com® forecasters predict the number of listings to slowly rebound in 2021. “Additional homes hitting the market will offer buyers some relief in 2021, but it won’t be enough to tip the scales in favor of buyers,” realtor.com® notes. “As inventory slowly begins to replenish and buyer demand for homes remains steady, sellers will continue to be in the driver’s seat.”

 

However, the ongoing COVID-19 pandemic and the possibility of a double-dip recession are two major wild cards that could lie ahead in 2021, realtor.com® notes.

Blog author image

John Tocco

Having the right real estate agent means having an agent who is committed to helping you buy or sell your home with the highest level of expertise in your local market. This means also to help you in ....

Latest Blog Posts

Cost vs. Value: 2020 Home Improvement Projects With the Highest ROI

Curb appeal really does have a major impact on the return you'll see at resale. Among the top 10 home improvement projects with the highest return on investment (ROI) in Remodeling magazine's

Read More

High-Priced Loans More Likely to Be in Forbearance, Study Says

As of Dec. 1, about 2.8 million homeowners are in a forbearance plan due to the COVID-19 pandemic. Homeowners who are struggling to make mortgage payments can request from their lender a pause or

Read More

Sellers Likely to Keep Market Advantage Next Year

Buyer competition remains strong, and low inventory is pushing home prices to new highs—so sellers are likely to keep their market advantage next year, according to realtor.com®’s

Read More

Buying Frenzy Heats Up in Second-Home Market

Homes are selling much quicker than they did a year ago, and sales of resort and second homes are no different. “Properties are moving fast,” Gay Cororaton, senior economist and director

Read More