The 2020 housing market was both resilient and record-setting.
Last week, the National Association of Realtors held its Real Estate Forecast Summit where they weighed in on what the market will look like in 20201.
Here are the 20201 predictions:
- Prices will continue to rise — Prices will increase by 8.8% nationwide in 2021.
- Mortgage rates will increase — Mortgage rates are expected to return to 3% next year.
- Single-family housing will increase — Housing starts are expected around 1.5 million per month next year and 1.59 million per month in 2022. Over 1.5 million houses broke ground in the fall.
- Second-home investments will continue to gain popularity— With more people working from home, interests in flipping houses, purchasing rental properties in lower-priced markets, and taking advantage of opportunities to pool small investments (as low as $100) together to buy houses as investment properties will increase.
- Multifamily construction — Construction has been relatively strong at 40-year highs, most of those projects were already in-progress, and it will be more difficult to get multifamily deals underwritten now than it was at the beginning of the year.
The above predictions are either from a survey of more than 20 housing and economist experts held during the Summit.