Real Estate Market Updates & 2021 Predictions

Last year threw many surprises our way, and most people are wondering, “What’s next?” or “What will 2021 bring?”. If you’re curious about the direction that experts believe the real estate industry is headed in, we have some good news for you: It’s expected to keep rising! The National Association of Realtors published the predictions of more than 20 industry experts specializing in economics, real estate and employment. We’ve pulled together some of the key take-aways for you below.

NAR 2021 PREDICTIONS

Based on the performance of the housing market in 2020, experts predict GDP growth of 3.5% and an annual unemployment rate of 6.2% in 2021. While it is predicted that housing prices will continue to rise–8% increase in 2021 and 5.5% in 2022–there are also expectations for 30-year fixed mortgage rates to remain in the 3.0-3.25% range over the next two years.

Image from GIPHY

More predictions from the leading experts:

• GDP will grow 3.5% in 2021 and 3.0% in 2022

• Annual unemployment rates of 6.2% in 2021 and 5.0% in 2022

• The share of American workers working from home will be approximately 18% in 2021, a decrease from 21% in 2020, with an even steeper decline to 12% in 2022.

• Small declines in office and hotel vacancy rates and a slight increase in retail vacancies next year

NAR data analysts also found the top 10 most resilient–and successful–real estate markets in the United States during this COVID-19 environment, with the Greater Atlanta area coming in #1. Full ranking below:

According to Lawrence Yun, NAR Chief Economist and Senior Vice President of Research, these markets are also predicted to perform exceedingly well throughout 2021 and the post-COVID19 environment based on higher volumes of residents moving into these areas, quicker local job market recoveries, and corporate models increasingly conducive to work-from-home setups.

READ MORE FROM THE NATIONAL ASSOCIATION OF REALTORS

Top 10 Markets During and in a Post-COVID-19 Environment report: https://www.nar.realtor/reports/top-ten-markets-during-covid.  

2020 NAR Real Estate Forecast Summit consensus forecast report: https://www.nar.realtor/research-and-statistics/research-reports/2020-consensus-forecast.  

The 2020 NAR Real Estate Forecast Summit consensus forecasts are compiled as the median of the responses of 23 economic and housing market experts who participated during the 2019 and 2020 summits. The survey was conducted from November 19 through December 4, 2020.

The National Association of Realtors® is America's largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.

Image from GIPHY

“Always relational, never just transactional.”

Our mission is to bring expertise and care to every Broad & Main venture because we believe that real estate at its core is all about relationship. We look forward to building one with you, so contact us today! 

Call us: 706.705.2661

Email us: broadandmainrealestate@gmail.com