Sale prices for existing homes are predicted to grow by 5.7% in 2021. Also, there should be about 7% more home sales made in the United States next year than in 2020.
Those statistics come from Realtor.com’s recent 2021 Housing Market Forecast and Predictions, The report also shows the U.S. metropolitan areas with the largest projected sales and price growths for 2021.
More on that coming up, but first, here are three key predictions from the report:
- Buyers: Due to an increase in sellers, the housing market in 2021 will be “much more hospitable for buyers … especially in the second half of the year.”
- Sellers: They’ll be in a good position for 2021 as home prices hit new highs ”even though the pace of growth slows.”
- Mortgage Rates: They are expected to average 3.2% throughout the year and 3.4% by the end of 2021.
Let’s take a look at the metro areas projected to enjoy the biggest housing price gains in 2021.
10 Metro Areas Expected to See the Biggest Growth in Home Prices in 2021
|U.S. Metro Area||Predicted Price Growth % (YOY)|
|San Jose-Sunnyvale-Santa Clara, Calif.||10.8%|
|Boise City, Idaho||9.1%|
|San Francisco-Oakland-Hayward, Calif.||8.4%|
|Tampa-St. Petersburg-Clearwater, Fla.||7.5%|
|Los Angeles-Long Beach-Anaheim, Calif.||7.1%|
From the figures above, it’s clear that sellers, especially on the West Coast, have much to gain as the economy continues to rebound.
Of course, volatility in the housing market is always a possibility especially as the COVID-19 pandemic continues to be a part of our lives. That’s just one more reason money expert Clark Howard wants you to be frugal with your money.
In general, Clark advises that you stay away from making large purchases right now. Instead, focus on building your emergency fund so that you can have some money on hand should you need it.
But if you’re considering buying a home, Clark wants you to think long and hard about your financial situation before making a decision.
“If you are planning to own the property for a number of years, then today’s conditions are fine as long as your employment situation is stable,” Clark says.
Ready to become a homeowner? Here’s how to buy a home and save money in the process.