The housing market in 2020 can be summed up in three main points: high home prices, which was good for sellers; low interest rates, which was good for buyers; and low home inventory, which increased housing demand.
While making housing market predictions is never exact, taking what happened in 2020, we can forecast the housing market in 2021 and see how housing demand will affect both buyers and sellers. In general, we anticipate the 2021 housing market will experience continued growth similar to 2020. Here is what you can expect in 2021.
The housing market of 2021 will be great for purchasing a home because of record-low interest rates (which we'll discuss here shortly). To take advantage of this, start by working with a mortgage lender. To help you better understand just how much the home of your dreams is going to cost every month, you can use our mortgage payment calculator. With accurate information, you're one step closer to owning your new home in 2021.
If you're considering selling your home in 2021, you will also have favorable conditions, as we are likely to experience a "seller's market." A seller's market is characterized by a shortage of homes available for sale, resulting in higher prices for the seller. Both low mortgage rates and low home inventory are the driving forces behind the housing demand and what people anticipate will continue for the housing market in 2021.
Like the housing market of 2020, the forecast shows the housing market of 2021 will continue to see record-low interest rates, which is good for buyers and will contribute to further growth of the housing market. You can check current mortgage rates weekly to have a better idea of your monthly house payment based on the interest rate you lock in for your loan.
With seasonal mortgage refinance rates lower than years past, the housing market in 2021 will prove to be an excellent time to refinance your home. Your home has likely increased in value over the years you've owned it. Taking advantage of a cash out refinance could put enough money in your pocket to get you that backyard oasis, build that kitchen you have been dreaming about or do necessary repairs on your home. For those simply looking to refinance to take advantage of a low interest rate, Wyndham Capital has you covered.
How Rates Affect Your Purchasing Goals in 2021
A housing trend is a housing trend until it's not. With that being said, if we continue to see high home prices, low interest rates and low home inventory, data suggests the growth we experienced in 2020 will continue for the housing market in 2021. With buyers wanting to take advantage of these low rates and purchase homes – and sellers wanting to take profits – the housing market of 2021 is on the horizon, and growth is anticipated.
If the housing market's reality in 2021 is attractive to you, it may be time to purchase a new home or refinance your current mortgage. At Wyndham Capital, we understand purchasing a home can be overwhelming at times, which is why we have compiled a list of answers to our most frequently asked mortgage questions for your convenience. As your reliable, trusted mortgage lender, we are here to help and ensure you feel right at home every step of the way.