You asked. We answered. What will the 2021 Real Estate Market Look Like?

Despite what anyone could have predicted amid a global pandemic, the 2020 housing market saw record-breaking growth! Which of course then begs the question-

Well…

the answer to that question is… 

No one REALLY knows.

With all of the uncertainty Covid19 has brought to the world, it makes it very hard to predict what exactly the 2021 market will look like.  

However,  we have heard our reader’s voices loud and clear and we know you want some answers. 

So we’ve compiled a list below of our client’s top 3 most frequently asked questions and using market research and expert resources, we have done our best to bring you some clarity. 

Top 3 FAQ regarding the 2021 Housing Market:

• Are the DFW home prices expected to continue to rise?

In short- Yes. Experts are predicting home prices will continue to rise. According to realtor.com “Sellers will get top dollar as buyers struggle with affordability.” Realtor.com predicts prices to rise 5.7%, compared to home prices in 2020.

• Will interest rates remain low?

Interest rates are expected to remain low but gradually increase.

Most experts are predicting rates will stay low until the pandemic settles down. The Federal Reserve says their goal is to keep rates low until at least 2023. However, many housing economist predict that as pandemic fears fade, interest rates will begin to trend back upwards, ranging from 3.1-3.3%

• Will we finally see an increase in inventory?

This question is a little more tricky to answer- so let’s look at both sides and play devil’s Advocate:

Yes-expect an increase! Spring/summer months are the hottest months in real estate. However, the Spring of 2020, the world froze. Potential sellers whom were prepared to list, took a step back. But good news! Many homeowners who couldn’t sell last year, are now motivated to list their homes in 2021. That paired with the typical spring inventory should result in an increase of homes on the market.

No- Inventory will remain low.  Potential sellers seem to be getting cold feet about listing their homes. They notice the lack of inventory,  the rise of home prices, and the fears of the unknown caused by the pandemic, and are deciding it might be best that they stay put.  Furthermore, the record low interest rates have also offered incentives for homeowners to refinance. This is enticing potential sellers to stay in their current homes, rather than fight the market. 

Bottom Line:

The DFW 2021 real estate market will remain hot. The

Sellers: If you’re thinking about selling, now might be an ideal time! Houses are expected to continue to sell for top dollar and with very few days on the market. You may want to take advantage of the opportunity!

Buyers: If you’re in the market to buy a home, don’t be discouraged by these market trend predictions. The low interest rates may help you afford a little bit more home keeping you in the game! However, with the current market favoring sellers, be prepared to compete with multiple offers. Make sure you have an experienced buyer’s agent representing you!

For more expert insight, visit the following link and read homelifestyle.expert’s 2021 market predictions.