The low interest rate environment will continue and will be a tailwind that will not only aid the recovery to the economy, but it will also continue to fuel the incredible run on housing in 2021. As a result, the local housing market is going to be HOT in 2021. Here is the forecast:
• Inventory: The theme for 2021 will be not enough homes for buyers to purchase.
• Demand: With tremendous buyer competition, buyers will need to stretch slightly in price compared to the most recent sale; so, expect appreciation around 6 to 8% for the year.
• Luxury Market: Luxury sales will continue to improve year over year and surpass 2020’s unbelievable record level by nearly 5%.
• Interest Rates: Mortgage rates will rise in 2021, climbing from their current low of 2.66% to 3.5% by year’s end.
The bottom line: The prediction from most economists is that 2021 will continue where the second half of 2020 left off, HOT. It will be a Hot Seller’s Market from the start of the year through the Summer Market. Multiple offers and bidding wars will be the norm for homes priced below $1.25 million. The market will heavily favor sellers and buyers will have to pack their patience to isolate their piece of the American Dream and take advantage of record low mortgage rates. Buyers will be required to stretch their offer prices from January through July as long as sellers do not overprice. Sellers will need to be cautious when pricing their homes even more important during the second half of the year. From mid-August on, the beginning of the Autumn Market, housing will evolve into a slight Seller’s Market, where sellers still get to call more of the shots, but home values will not change as much.
I hope your holidays were enjoyable even though they might have looked a little different. I was able to take a week off and spend time with my husband, my brother and his girlfriend who visited from New York. Christmas Eve and Christmas Day were not the same for my family as years past; my parents and my husband’s parents came down with COVID. Fortunately, they are slowly recovering but taking a while until they are back into full swing. On a lighter note, we were able to surprise my niece with a special Christmas gift; her very own jeep! The look on her face was magical and she loves taking all her dolls and toys for rides. As we step into a new year of what will continue to be different than years past, I encourage you to enjoy the small things for those are the big things that can provide you with the most satisfaction at the end of the year!
We’ve put together a Wintertime Activity Guide to help ease your way into the New Year. Here’s a sample of ideas:
• Play balloon tennis using a pool noodle and balloons
• Take virtual tours of museums, zoos, aquariums and theme parks
• Tie-dye your own mittens, hats and t-shirts
• Play "I Spy" during a car ride or a walk
• Prepare your garden for spring
For the full list visit https://cb.today/ocrc/2021/winterguide