What’s in Store for the Housing Market in 2021?
| The short answer is: it should be a blockbuster housing market in 2021! If you’re considering selling or buying, this might be the year to jump in. First a look back at 2020 Let’s begin by looking at what amazing things happened in 2020 to set the stage for 2021. Sales in 2020 were so brisk that inventory of houses for sale dropped 40% nationally, below 700,000 for the first time in modern records. This lack of supply drove up the median listing price in 2020 to $340,000, up a whopping 13.4% compared to 2019. And the typical home spent 66 days on the market, down 13 days from the year before. In short, 2020 set up a great start for sellers in 2021. Now is also a good time to buy. Your home likely will continue to appreciate, and lending rates are at all-time lows. It doesn’t look like prices will go down any time soon. |
 |
| How 2021 is shaping up Now, what’s next? Experts remain positive, predicting: Prices will increase as interest rates remain low. We could see an upsurge of another 7% to 10% in home valuations nationally on top of the gains in 2020. Single family housing starts could increase 9%. The home ownership rate should rise above 68% for the first time since 2005. In Sarasota, the median sale price was about $350,000 by January 1, up 9.3% during 2020. Demand is expected to keep prices rising in 2021, in part fueled by an influx from Northern cities as more people are able to work from home even after the pandemic. What is driving this hot trend of the housing market? Lots of things. Remote work has made relocation easier and led to demand for increased space. Low mortgage rates have boosted how much home a buyer can afford. The economy remains in recovery mode, with more people returning to work. Millennials and Gen-Xers are continuing to jump into the market and older Millennials are trading up. The segment of Asian American homeowners is growing, too, and the federal government may create down-payment assistance for Black and minority families. Technology changes will continue, with buyers liking to tour properties online first, and using e-Closings to save time. The news for buyers and sellers is overwhelmingly positive! |
 In 2021, we could see an upsurge of another 7% to 10% in home valuations on top of the gains in 2020. |
| Want to really know what sells? Or how to buy in this market? Give me a call! As always, if you’re thinking of listing, or you don’t own a home and are ready to buy, let me know and I’ll help you take advantage of current market conditions. No matter what is happening in the economy, and especially now, you need a professional as your ally. Nancy Phillips Michael Saunders & Company 941-400-6078 nancyphillips@michaelsaunders.com nancyphillips.michaelsaunders.com Twelve-Year Five Star Real Estate Agent |