Mansion Global – December 14, 2020
According to a newly released Redfin report, the U.S. housing market will get stronger through 2021, as the economy recovers from the pandemic-driven recession. Home sales, new construction and home ownership are predicted to rise to record highs.
According to Tuesday’s report, Annual home sales are expected to rise more than 10% in 2021.
According to Daryl Fairweather, chief economist of Redfin “Even as the pandemic hopefully nears its end, Americans will continue to buy homes that fit their new lifestyle.” “2021 will see more home sales than any year since 2006.”
The housing market will continue to be buoyed by historically low mortgage rates. Redfin predicts that the rates will rise slowly from 2.7% to around 3%.
More new homes will be built in 2021 than in any year since 2006. New construction has already picked up since the pandemic began. Building permits increased by 21% from September to November compared to the same period last year.
Historically low interest rates have allowed builders to finance their projects at lower costs. Home buyers are now more eager to buy in suburban and rural areas where land is cheaper.
Redfin predicts that more than 14.5 million Americans will migrate across county lines, the highest number since 2004. The normalization of remote work during the pandemic has set off a domino effect of increased home ownership. By the end of 2021, the American home ownership rate will reach 70% for the first time since 2005.
At the metro level, San Antonio, Texas; Tucson, Arizona and Tampa, Florida, will be the hottest housing markets in 2021. Popular major cities nearby, including Austin, Phoenix and Miami are likely to become much less affordable.