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 https://dc.urbanturf.com/articles/blog/could-2021-be-the-strongest-year-for-the-housing-market-since-2005/17679.
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