A bright spot in an otherwise grim 2020 was the Southwest Florida real estate market. After a brief pause at the beginning of the pandemic, home sales quickly increased. A lack of homes on the market and low mortgage rates gave way to skyrocketing prices. This in turn lifted home values, creating more wealth for homeowners. Interestingly, experts predict another strong housing market in 2021 Real Estate. We are seeing a forecasted increased demand from buyers who originally pressed pause on purchasing homes because of the pandemic, from existing homeowners who need more space to accommodate working from home and virtual school, and from condo owners seeking to escape high capacity buildings for single-family houses to minimize exposure to COVID-19.
First-time home buyers are predicted to remain a strong force in the 2021 Real Estate market, with the largest legion of Millennials turning 30. But first-time buyers are likely to face opposition in 2021. Fast-rising prices may create a barrier to homeownership for many first-time buyers who don’t have existing home equity to tap for down payment savings.
2020 changed the game in everything from touring properties to looking for and locking rates and participating in secure eClosings. We are going to see homeowners and the housing industry at-large utilizing technology, even more, to engage buyers and execute deals.
High buyer demand and still-low home supply in 2021 Real Estate are predicted to keep house prices growing, but at a slower pace than 2020. With an imbalance between supply and demand, it may lead to sustained competition among buyers and further home price appreciation.
We’re entering 2021 with a number of dynamics that will more than likely keep this crazy housing market blazing on. Until then, buyers should be cautious and sellers jubilant.
