Before 2021 hits, housing predictions are being given out by many experts in the housing sector in the real estate market. But what are those said predictions? Some experts say that the next year will have a good effect on the housing market. Meanwhile, others are saying that demand will grow outside of major cities.
The Housing Market Will Be the Most Robust It Can Be in 2021
When it comes to providing predictions in the housing market, one of the common predictions is that it will be robust next year. According to Mansion Global, many experts are stating that the year 2021 will be a robust year for the housing market. They say that many parts in the housing sector will have a new record-high demand within the following aspects:
- Increased home property sales.
- Many new housing constructions.
- Increase in overall homeownership.
The increase in those mentioned aspects is thanks to the record-low mortgage rates, which remain the same throughout the whole current year. They state that the upcoming year would make the housing market in the United States even stronger than before.
The main reason why is that the whole economy is starting to recover from the effects of the pandemic. Many are expecting that there will be a 10% rise in 2021 for annual home sales. This is after a recorded 5% increase in 2020. The said rise is the result of many Americans buying new homes that meets their new lifestyle. That results in sales that is more than the historical record of 2006's sales.
Additionally, many believe that low mortgage rates will still continue in 2021 and will have a very slow rise in the same year. The expected rise would be around 3.0% overall, coming from 2.7% in 2020. This will surely result in many residential properties being built due to high demand. They have noted that there was a significant increase in construction and building permits, amounting up to 21% during the months of September to November compared to last year's.
Many Americans WIll Move Out to Various Suburban Areas, Experts Say
Aside from the whole housing market is robust next year, the other notable prediction that experts say that many Americans will move out of major cities. According to Cision PR Newswire, many of them will move out of major cities to various suburban and rural areas. The amount of people moving out is estimated to be around 14.5 million people. They have noted that this movement of people from urban areas to suburban and rural areas will last a decade.
Aside from that prediction, they have also agreed that mortgage rates will still remain low. It is to the sluggish recovery of the global economy. The economy will still be slow to recover even if vaccines have been distributed globally. Price growth will be also slow, despite having more house sales than ever. It is expected that sales growth and new listing growths will steadily increase up to 5% next year.
