What will the real estate market look like in 2021? Well, that depends on whether you are interested in buying, selling, or investing in real estate because each of those markets is different. However, if you want a generic answer, it is pretty easy: The 2021 market is already red-hot and you should act now.
People have also been asking me how the election will impact the real estate market. To answer, here is an excerpt from a piece in Barron’s Magazine, one of the leading financial magazines in the world: “Who the president of the United States is makes a huge difference in our daily lives but a much smaller one for the U.S. economy and housing market, which are driven by forces much larger than who is in charge in Washington, D.C.”
What about interest rates? Rates are so low that money for home loans is essentially free. Looking back to January 2019, the rate for a 30-year fixed-rate mortgage was approximately 4.5%. In January of 2020, that rate was 3.5%. Today, it is an astounding 2.75%. Low rates are the reason that increased house prices have not impacted home affordability and are a major factor that drives our real estate market.
“The 2021 market is red-hot and will continue to be throughout the year.”
In terms of supply and demand, I am focusing on Wake County. In 2020, there were approximately 23,000 homes sold in Wake County. Today, there are 1,393 homes on the market, which amounts to less than one month’s worth of inventory—a mind-boggling statistic. One of the most positively impacted markets in 2020 was the luxury market. Throughout that year, 4,293 homes sold; today there are 540 on the market, which is, once again, right around a month’s supply. As you can see, supply and demand definitely favor today’s home sellers.
As I said before, the 2021 market is red-hot and will continue to be throughout the year.
All of us here at Saye Triangle Realty always strive for excellence and 100% client satisfaction. Whether you are looking to buy, sell, or invest, we would love to talk to you and help you achieve your goals in 2021. Do not hesitate to reach out to us with any questions.
