While last year taught us all that anything can happen, here’s what buyers and sellers can expect with real estate in 2021 …
Mortgage Rates
Buyers saw mortgage rates at all-time lows in 2020. The average over the course of last year was just 3%.
Rates are already starting to rise, although they are expected to remain attractively low.
In fact, Bankrate experts expect mortgage rates to end at 3.1% after slowly but steadily rising during 2021. The National Association of Realtors expects mortgage rates to average 3.1% in 2021, while the Mortgage Bankers Association says rates will average 3.3% in 2021.
Home Prices
Mortgage rates are remaining low, but home prices are expected to go up in 2021. The California Association of Realtors forecasts that the median home price in California will be $648,760 in 2021 (an increase of 1.3%).
Fresno is expected to be well above this average. Realtor.com is predicting an 8.5% growth over 2020 prices for the Fresno metro area.
Buyers
Buyers in 2021 are looking for more space after all the time they spent at home in 2020. As many people continue to work at home, office space is in high demand. So is at-home learning space.
Low mortgage rates are a benefit to buyers, as the lower rates put higher-priced homes and/or better neighborhoods in affordable reach.
And more homes should be coming onto the market, eliminating some — although certainly not all — of the heavy competition and bidding wars.
Sellers
Quicken Loans predicts that the 2021 real estate market will continue to favor sellers.
There is still more demand than supply, which can lead to multiple offers and a shorter time on market.
Also, as noted above, home prices are expected to increase in 2021, which is good news for sellers.
But Let’s Talk About YOU
Of course, these predictions of what to expect with real estate in 2021 are based on broad generalities and averages. So, we invite you to contact us so that we can talk specifically about you and what you want to do with real estate in 2021.
Send us a message or call us at 559-490-0207 today.