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Top 5 Things to Know About the Real Estate Market 2021

Posted: January 08, 2021 by Marisa Koepp

Top 5 Things to Know About the Real Estate Market 2021 
2021 is a year I can comfortably say we are all mostly looking forward to. 2020 was a year with lots of uncertainty, and most people couldn't wait to get out of it. Now that 2021 is upon us, let's take a look at what the real estate market might look like. 

1. Surge of Buyers

In 2021, we will most likely see a surge of buyers. The millennials are the largest and most educated generation in history, about 72 million in 2019. A lot from this generation just turned 30 this year and are entering their prime home buying years. More than half of all the purchase mortgages originated by Fannie Mae and Freddie Mac went to first-time home buyers in data available for 2020 which indicates a trend that will flow into 2021.  

2. Low Interest Rates

According to the benchmark 30-year fixed mortgage rate is 2.880% with an APR of 3.190% for January 8th, 2021. With interest rates this attractive, there is no question why we would see a surge of Buyers in the 2021 market. The question remains, because interest rates are so low, is it still worth it to buy in this  market while the prices are still on the rise? 

3. Home Prices Still on the Rise

The average sales price in Waukesha county have increased 10.33% according to since last year this time. New listings have gone down 40% which means because there is limited inventory, prices increase. This trend may slow down in 2021, but the inventory of homes this year will determine this.  

4. List NOW 

If you've been considering listing, now would be a great time to do it. As mentioned above, because the inventory is low, home prices are up. Because interest rates are low, Buyer's who haven't secured a home in 2020, are hoping to secure one in 2021. Get in contact with an experienced local real estate agent  in your area. It is always best to get guidance on the sale of your property in this ever changing market. 

5. A Real Estate Market Crash is Unlikely

You may be wondering if the housing market could collapse with all the uncertainty behind everything that happened in 2020. Well, it’s impossible to know for sure,  but economists suggest a housing crash is unlikely.

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