If you thought 2020 was a strong year for the housing market, 2021 may blow it out of the water. At least that is Zillow's assessment, per their 2021 sales forecast.
Below, UrbanTurf highlights a few of Zillow's predictions.
- Existing home sales may increase by 22%. 5.7 million existing homes are expected to have sold by the end of 2020, but Zillow expects that number to be even higher by the end of next year. The company predicts nearly 6.9 million existing homes are expected to sell in 2021. This would be a 21.9% year-over-year increase in sales — the biggest year-over-year gain since the early '80s — and the most existing homes sold in a year since 2005.
This increase will be propelled in part by the momentum of 2020, as well as mortgage rates that will continue to be low, keeping interest in homebuying high. Millennials and Generation Z are also expected to be more active in the market.
"The aforementioned financial and demographic forces, combined with a year-plus of pandemic and quarantine life that has reshaped people’s housing needs, priorities and opportunities will help ensure high demand persists well into 2021," the report states.
- Home values will be at least 10% higher by this time next year. Zillow anticipates that year-over-year home value growth will peak in June next year, at 12%, and that for November 2021, the average home value growth will be 10.3% year-over-year. This may encourage more homeowners to list their properties, which could alleviate some of the constrained supply and corresponding price growth by mid-year.
This article originally published at http://dc.urbanturf.com/articles/blog/could-2021-be-the-strongest-year-for-the-housing-market-since-2005/17679
Most Popular... This Week • Last 30 Days • Ever
Landmark Theatres is in the final stages of negotiations that would have it operating... read »
The planned 8-unit development would be located on K Street right along the Potomac R... read »
The next phase on the Center Block would deliver 166 apartments and 221 hotel rooms.... read »
DC's crane count still ranks as one of the highest among U.S. cities despite a declin... read »
The latest installment of Above Asking revisits two recently-featured listings in the... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
The preferred mortgage product among most home buyers is the fixed-rate mortgage. How... read »
STAY DC provides rental aid and utility payment grants to at-risk District residents ... read »
The yet-to-be-built home may set a new bar for luxury in the residential real estate ... read »
Federal Realty plans to eventually file a planned unit development application for th... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro