A Crystal Ball in 2021 for Real Estate

Wish you could see into the future?

• Will the vaccine eliminate the Coronavirus?
• How will my investments perform?
• Can I plan for my kids to move out?

The world of real estate is no different. Everyone anticipates the uncertainty of the future especially after 2020. Is this year going to be a buyers’ market or a sellers’ market? Will mortgage interest rates increase? Should I rent or buy? 

This blog is not a crystal ball but a forecast of trends from the past and looking toward. 

To sum it up, our local markets will continue to see the same pattern of growth in real estate as in previous years. The five following factors will determine 

Home pricing will gradually increase

The National Association of Realtors predicts home prices will increase while Yahoo.com specifically calls out Charleston along with Austin Tx and Phoenix, AZ. These cities will continue increasing as previously. 

Mortgage Rates Slowly Increase

In 2021, interest rates will rise from the record lows we became accustomed to in 2020. The economy will improve as will interest rates gradually increase. 

People will continue to move to the suburbs and less populated areas. 

Suburbia and less populated areas will see more of the urban flight due to the CornonaVirus. The flight from our northern states to our South Carolina coast will increase. Buyers are buying homes sight-unseen in ways never seen before. 

Some homeowners will struggle, but minor pain will be experienced. 

Struggling homeowners will be able to sell their way out of trouble. The equity built in their homes from previous years is at record levels. The new construction and a limited number of homes on the market will keep their value high. 

VA Loans 

Loans from the U.S. Department of Veterans Affairs will continue to explode. Over the past couple of years, loans from the VA have doubled will continue to be a big player in the 2021 market. This is due to their no down payments and loose credit requirements.

Contact me today to go over your options for the coming year.