national forecasting
2020 will be remembered for many reasons , and optimism is one thing that ’ s been in short supply since the spring . We ’ re experiencing a global pandemic , social unrest , an economic downturn , and natural disasters , just to name a few . The challenges brought on by the health crisis have also forced many homeowners to reevaluate their space and what they need in a home going into 2021 . So , experts are forecasting that next year is one in which we can be optimistic about real estate for three key reasons .
1 . The Economy Is Expected to Continue Improving
“ 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 .” Tim Duy from the University of Oregon
2 . Interest Rates Are Projected to Stay Low
3 . 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 , says :
“ 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 .”
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