Last year, 2020, will be remembered for a number of reasons. Good memories and optimism are something that probably do not come to mind first when reflecting on the year. There are many things that turned 2020 into a rough year for every human on the planet, all stemming from a global pandemic. One silver lining in the dark cloud this year brought on was a strong real estate market. Homes are selling at a record pace and mortgage interest rates are at an all-time low.
Here are three reasons to continue to be optimistic about real estate as 2021 begins.
The Economy is Expected to Continue to Recover at Better than Expected Rates
As COVID cases are reportedly rising some people are hesitant to look at the state of the economy optimistically. Despite what it may seem like the overall numbers across the country are taking a positive turn, a higher positive turn than many experts and analysts predicted. The predictions for the future are quite optimistic especially looking at longer-term growth periods such as the next four years.
Interest Rates are Projected to Stay Low
The latest projections from Freddie Mac show that interest rates on traditional 30-year fixed-rate mortgages are expected to stay around the 3% mark for another year. The low rates will help to keep the real estate market strong and healthy over the next year as home buyers seek to find a home that better fits their needs and take advantage of amazing interest rates.
Future Home Sales are Expected to Grow
As the economy begins to slowly improve and interest rates continue to remain low homes are expected to continue appreciating in value. The chief economist at Realtor.com reports that they expect home sales to rise about 7% over what they were last year in 2020. They expect the momentum of home buying to pick up again in the spring and carry the faster pace into the later second half of the year.
There are several experts in many different areas of the real estate professional fields expecting the real estate market to stay strong and even see positive growth from where it is now in the coming year. It is expected that more buyers will be looking for homes in 2021 which is excellent news for sellers and that this will encourage more sellers to put their homes up for sale, especially in the spring when the real estate market is traditionally most active.
If you have been considering putting your home up for sale now is a great time to do so. It is more beneficial for sellers to capitalize on the low competition and high demand for homes. If you are hoping to buy a home you may be surprised at how much home you can afford right now with the current low mortgage rates.
For help buying or selling a home in Parkland, Coral Springs, and Boca Raton please contact me any time. I am an experienced local real estate agent with deep knowledge of the local real estate market.
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