2020 has certainly been a whirlwind of a year. And that goes for all markets, not just housing.
From a global pandemic to a controversial presidential election, it is safe to say we are ready to put this year behind us and look forward to the New Year.
As far as Real Estate goes, we have experienced record-low mortgage rates, rising house prices, refinances galore, and a housing shortage – to name a few.
Let’s take a look at the effects that these factors will have on the 2021 Real Estate market.
The experts at S&D Real Estate predict that home prices will continue to rise in most U.S. cities, including Lakeland, Florida.
Back in October, we wrote about how home prices had started to surge as mortgage rates lowered.
Based on data gathered by Realtor.com, home prices have been steadily rising in the Lakeland area. Pair that with more buyers trying to take advantage of low mortgage rates before they rise again, homes are being listed for above what they usually would be.
The scarcity in new inventory plays a huge role in this as well.
Mortgage rates are not predicted to rise again until the middle of 2021, so you can expect to see higher home prices until then.
Speaking of those rates, chief economist of Realtor.com, Danielle Hale predicts rates to average 3.2% throughout the year, going up to 3.4% by the end of the year.
According to Bankrate.com, rates are currently averaging 2.9%. As we approach the spring and summer months, you can expect to see this number rise.
Hale states, “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.”
Most of this activity is predicted to be seen in the first half of the year as the momentum from 2020 will carry over.
Real Estate trends
We have noted quite a few times the rise in millennials taking over the market.
Millennials will continue to shape the market in 2021, while Gen Z buyers will start to enter the territory.
We know, that sounds crazy – right? However, the older end of the Gen Z spectrum is now in their early 20’s!
Additionally, you can expect to see more of a need for larger homes due to those who are now opting for remote work and a more suburban lifestyle.
As far as the Lakeland, FL Real Estate market is concerned – you can expect to see sellers continue to benefit while buyers work at a fast pace, slowing down later in 2021.
The best way to get a leg up on the 2021 market is to make sure you have an outstanding Realtor on your side.
Contact us today to schedule a free consultation with one of our professional agents!