2020 will be remembered for a host of things, with optimism being one that fell into short supply. Looking toward 2021, however, experts are forecasting that there are three very strong reasons why the new year may just be a great one coming up.
The Economy is expected to continue improving.
Tim Duy from the University of Oregon puts it this way:
“There is nothing fundamentally ‘broken’ in the economy that needs to heal…there was no obvious financial bubble driving excessive activity in any one economic sector when the pandemic hit…With Covid-19 cases surging again, it is understandably hard to look optimistically to the other side of this winter…Don’t let the near-term challenges distract from the economic stage being set for next four years.”
Interest Rates are projected to stay low.
In the latest projections from Freddie Mac, interest rates for a 30-year fixed-rate mortgage are expected to remain at or near 3% next year. These low rates will continue to make homes more affordable, driving demand for housing in 2021.
Future home sales are forecasted to grow.
While the economy improves and interest rates remain low, homes are also expected to continue appreciating as more people buy in the coming year. Danielle Hale, Chief Economist at realtor.com has stated:
“We expect home sales in 2021 to come in 7.0% above 2020 levels, following a more normal seasonal trend and building momentum through the spring and sustaining the pace in the second half of the year.”
Experts forecast that both buyers and sellers are going to be active in 2021. Those wishing to enter the market may seriously consider that now is the time.