Market Update January 2021 #3

This month’s video series has been all about what to expect in the real estate market in 2021. Are we gonna see a crash?

I don’t know about you, but we found the media to inflate the truth and quite frankly, use negative headlines to get more viewers. But let’s look at the projections for 2021 from the people that are the experts in the real estate industry. Low-interest rates are an indicator of a strong housing market. According to Freddie Mac, “They project interest rates to remain low. In fact, lower than they have been for the past five years.” They are projecting interest rates to be in the low threes for the remainder of 2021.

Also, chief economists of realtor.com, Danielle Hale States, “We expect home sales in 2021 to come in at 7% above 2020 levels. Also, all major servicers like Fannie Mae and the Mortgage Banker Association, and more are forecasting an increase in home prices in 2021. Not as significant of an increase as in previous years, but still an increase.

Also, according to Lawrence Yun, chief economist of the National Association of Realtors, he States, “This winter may be one of the best winters for sales activity. On a winter-to-winter comparison, this could be one of the best breakout years just based on the fact that the pending contracts are at such a higher level.”

Here in Kent County, we’re seeing strong home sales this winter. We only have just under a month’s worth of inventory available. Which makes this a super seller’s market. The average home in Kent County is selling for around $267,000. And the hottest price range, with the most closing, is still at $200,000 to $249,000. We hope this information is helpful to you in giving you some insight into what 2021 may bring.

As always, we are here to answer any questions you may have. So feel free to contact us at A&J Realty Partners at Key Realty. And remember, A&J Realty Partners are here to help you fulfill your dreams no matter the size!