2021 Housing Forecast: Promising Outlook from Experts
Record low mortgage rates are giving hope to new home buyers in 2021!
A bright spot in an otherwise dreary pandemic-ridden 2020 was the residential real estate market. After briefly retrenching at the beginning of the pandemic, home sales soared across the nation and locally in Nebraska. A lack of inventory on the market and historically low mortgage rates helped prices soar to new heights. Rising home prices lifted values, creating more wealth for homeowners in the Omaha, Council Bluffs, Papillion, and Lincoln markets.
Experts Predicting a Strong Housing Market in 2021
Real estate experts across the country are predicting another strong housing market in the new year. The experts are forecasting increased demand from buyers who delayed purchasing homes because of the pandemic; from existing homeowners who need larger spaces to accommodate parents working from home and children attending school virtually; and from those renting apartments who are seeking to escape multifamily buildings for single-family houses to mitigate exposure to the virus and take advantage of historically low-interest rates. In Douglas, Pottawattamie, and Lancaster counties, it is cheaper to purchase a three-bedroom home than to rent one. Technology and virtual tours will help bolster home sales in 2021 as well.
- Mortgage rates are projected to remain at or near 3% in 2021 fueling strong buyer activity.
- Home sales are forecasted to increase in 2021 while interest rates remain low.
- Home prices are expected to continue appreciating as more people buy in the coming year.
Virtual Tours Will Make Home Buying Simpler
Yes, real estate has gone viral! Before the pandemic, many of us enjoyed perusing online, looking at different homes for sale in Omaha, Council Bluffs, or Lincoln metro areas. But with social distancing in play, virtual formats have become a new normal for the homebuyer, with Nebraska Realty agents utilizing live stream features on social media for open houses, and more emphasis placed on virtual tours, videos, and photographs in home listings.
Virtual property tours have the potential to become the new normal in the home-buying process. 3D tours are efficient for buyers and sellers alike because they create a 24/7 open house. The ability to tour homes and close on purchases virtually will make buying a home simpler in 2021. Customers in Nebraska and Iowa can quickly connect with the latest listings, virtual open houses, and virtual home tours on the Nebraska Realty website.
In years past, many homebuyers were reluctant to make such a large purchase without ever entering a prospective home in real life. That wasn’t the case in 2020. Real estate has gone virtual, the digital tools that many used in 2020 are sure to stick around throughout 2021 and beyond.
The Bottom Line
With so much uncertainty affecting our jobs in 2020, the economy, and the day-to-day life of living in a pandemic, it can feel incredibly difficult to plan for the future. But with expert real estate forecasts, we know to expect a seller’s market in the new year – it could be one of the best times to sell your home.
We also know to expect an influx of new homebuyers. Renters are seriously considering a new home purchase. They can no longer deny the historically low-interest rates and will take advantage of this opportunity.
Finally, although 2020 was tumultuous, it’s important to keep in mind that the housing market is leading our economy toward recovery. Whether you’re a buyer or a seller, 2021 offers you something special. We encourage you to reach out to a Nebraska Real Estate agent to determine how to make your best move in 2021.