2020 has been a rough year, but not for the housing market. This past year ended strong and it’s only getting stronger. In Zillow’s 2021 forecast, this year is projected to have the strongest home sales growth since 1983 with 21.9%* annual growth compared to 2020 — that’s a total of 6.9 million homes sold. So if you’re thinking about buying or selling this year, keep these five trends in mind.
The market is heating up.
2021 is expected to reach all-time highs during the spring/summer buying season.** Getting pre-qualified before you find the home of your dreams can give you a leg up on other buyers — letting sellers know you’re serious, and streamlining the process once you’re ready to commit.
Mortgage Rates May Remain Low.
According to an average of forecasts from Fannie Mae, Freddie Mac, the National Association of Realtors, and Mortgage Bankers Association, 30-year fixed rates are expected to average 3.075% in 2021, down from 3.125% in 2020.***
Move over Millennials. GenZ has arrived.
Millennials have kids and may be looking for more space, but they’re no longer dominating the market.** With the oldest of the GenZ generation turning 24, they’ll be a force for years to come.
The one word that can add thousands to your selling price.
With so many people working from home, home listings that feature the word “office” are currently selling at a price-per-squarefoot premium of 3.4%** compared with broader listings.
From city slickers to suburbanites.
3 of every 4 individuals reported an increased willingness to commute or live further from the office.**
If you’re ready to make your move or refinance your home in 2021, get started by connecting with one of our loan officers at LMCU.org/Mortgage or by giving us a call at (844) 754-6280.
*Zillow Predicts Stronger Housing Market Across the Board in 2021. Business Insider, December 21, 2020. https://markets.businessinsider.com/news/stocks/zillow-predicts-stronger-housing-market-across-the-board-in-2021-1029910331. **2021 National Housing Forecast. Realtor.com, December 2, 2020. https://www.realtor.com/research/2021-national-housing-forecast/. ***Housing Mortgage Trends 2021. Nerdwallet.com, November 18, 2020. https://www.nerdwallet.com/article/mortgages/housing-mortgage-trends-2021.