Real Estate Predictions for the Final Quarter of 2021

The 2021 real estate market has been a strong seller's market. Rising home prices, low interest rates and low inventory have made buying a home more difficult. That means it's been a great year for sellers and a time of frustration and competition for buyers. 

It is still possible to find a home at a reasonable price, but it will take some time and patience. Predictions for the final quarter of 2021 go along with the trends already seen throughout the previous nine months.

Demand Far Outweighs the Supply of Homes Available

With fewer houses on the market than can meet demand, and prices inflated by 15 to 20 percent, competition for homes has been driving prices up. This hot market for sellers is likely to convince more homeowners that now is the time to sell their home and cash in. 

Predictions for the real estate market's final quarter of 2021 include:

• Slight corrections of the market will be more favorable to buyers.
• Buyers will continue to be wary about high prices in the hopes prices will decrease.
• A bit more inventory will become available as buyers remain wary of inflated prices.
• No major increases are expected for interest rates, although the economy has been improving.

Uneven supply and demand for houses is a continued problem in the United States real estate market. This is expected to remain an issue for homebuyers for many months. People want to own homes, but the supply just can't keep up. 

Remote work has played a role in buyers looking for houses in more suburban or rural areas, as they do not have to live in the city to work anymore. Low interest rates make it more affordable to purchase a more expensive home, another factor in rising home prices. 

While there is a softening demand for houses, the market will continue to offer strong opportunities to sellers for the final quarter.

To get more leverage in this competitive market, buyers who need a mortgage must get their financing in order before making an offer. For information on loan opportunities, schedule time with me on my calendar.