By Brenda Richardson | Forbes
Amid Covid-19 uncertainty, 2021 will be a robust sellers market as home prices hit new highs and buyer competition remains strong, according to the realtor.com 2021 housing forecast released today. Inventory is expected to make a slow but steady comeback, which will give buyers some relief. However, increasing interest rates and prices will make affordability a challenge throughout the year.
“The 2021 housing market will be much more normal than the wild swings we saw in 2020,” said realtor.com chief economist, Danielle Hale. “Buyers may finally have a better selection of homes to choose from later in the year, but will face a renewed challenge of affordability as prices stay high and mortgage rates rise.”
Millennials, Gen Zers to make their mark
The largest generation in history, Millennials, will continue to drive the housing market as they outnumber Gen X and Baby Boomers. Older Millennials will likely be trade-up buyers, while the larger, younger segment of the generation age into their key home buying years.