Monday, December 28, 2020 / by Vanessa Saunders
By Vanessa Saunders, MBA, MIMC , Broker Owner, Global Property Systems Real Estate.
As we get ready to shuffle 2020 out the door, about the only thing missing from our New Year’s Eve plans is optimism for the coming new year. It's not surprising a mood of "good riddance" seems to sum up the national attitude about the year 2020. After all, we've faced a global pandemic, social unrest, an economic downturn, a lame-duck president and natural disasters. It even rained on Christmas. The year has driven many homeowners to reconsider their home spaces, where to live and what to live in to cope during 2021.
That said, we do have some things going for us. Here are three things we can be optimistic about.
The U.S. economy is still strong.
Even though independent businesses, especially in the service sector, are struggling, the markets have made impressive gains from last spring. There is nothing fundamentally wrong with the economy. There is no “bubble” driving excessive activity that’s about to pop. Covid finally looks beatable, as three vaccines have now been announced as effective and safe.
Mortgage interest rates appear to be holding at record low levels.
Predicting the future of mortgage rates has often been seen as an act of futility. Looking at past performance, (see chart) it appears that as rates are firmly in three-percent territory and most economists predict they will stay there for the duration of 2021. These low rates will help drive demand as housing prices become more affordable.
2021 home prices, sales to rise.
As the economy improves and rates remain low, home prices will continue to rise. Danielle Hale, chief economist for Realtor.com said in her 2021 Housing Predictions, “We expect home sales in 2021 to come in 7.0% above 2020 levels, following a more normal seasonal trend and building momentum through the spring and sustaining the pace in the second half of the year.”
The only factor driving down the real estate market seems to be its own success. Over the last six months, homes have been snapped up at such a rate that available homes have become a dearth on the market. Regardless of interest rates and motivated buyers, you can’t sell ‘em if they’re not for sale.
An optimistic outlook.
What most forecasters expect in 2021 is that it will be another active year. If you’re thinking about selling your home, there is no need to wait until spring. Take advantage of this opportunity to be a seller in a seller’s market.