What is a housing market prediction for 2021 and 2022? Is it a good time to sell or buy?

What is a housing market prediction for 2021 and 2022? Is it a good time to sell or buy?

2021 will be a year unlike any other, with home sales in the US climbing to their highest point in 40 years. That’s the bold prediction from Zillow, which forecasts an increase of 21.9% – almost 6.9 million homes – making this the biggest annual growth since 1983.

‘’Home price appreciation will reach its fastest pace since the Great Recession,” it adds, “as the inventory crunch continues to pit buyers against each other, competing for a scarce number of homes for sale.”

Realtor.com echoes that conviction, after the number of homes for sale reached an all-time low in December, dropping to fewer than 700,000 for the first time. With renewed buyer confidence, it’s convinced prices could climb by 5.7%, and forecasters suggest that will continue be the trajectory into 2022 and beyond – as much as the next 10 years

Zillow also believes that, although 2020 saw an exodus from dense urban areas, as buyers sought safety and space in the suburbs, “city living will almost certainly enjoy a renaissance in 2021.”

A report by realtor.com found that, in January this year, in the 50 largest metros, the median rent was $1,442, up 0.8% year-over-year. That indicates that, with news of relief and vaccines, there is renewed confidence in city living. However, while rents in key urban markets are beginning to creep up again, they’re unlikely to return pre-pandemic levels for at least a year.

The post-pandemic boom is the result of a perfect storm of market conditions – low supply, high demand, and record low mortgage rates – that will “create the hottest spring shopping season in recent memory, with sales happening quickly and often above list price.”

But it could also be the last of its kind, as the introduction of real estate technology and remote viewing challenges long-held assumptions about buying habits. Spring has traditionally been considered the best time to put a property on the market. However, purchases in 2020/2021 continued through fall and winter, suggesting seasonal shopping is likely to become far less important, as in-person showings and open houses decrease.

← Prev Post

Ready to maximize your property investments?