Zillow, the Seattle-based American online real estate marketplace company is predicting that the for-sale housing market which showed incredible strength in 2020, will be even stronger in 2021. In their forward-looking research Zillow expects demand to continue to stay high and is expecting a surge in cities as economies reopen. Annual home sales growth is expected to be the highest in almost 40 years as life and financial certainty brings more sellers into the market to meet the heavy demand and technology allows for faster connections with interested buyers. Even so, home prices, mortgage rates and rents are likely to rise, bringing affordability headwinds that must be faced. Zillow expects a perfect storm of market conditions to create the hottest spring shopping season in recent memory, with sales happening quickly and often above the asking price. Adding in expectations for mortgage rates to rise later in the year, and Zillow anticipates that we could see a buyer frenzy as they look to lock in rates as low as possible.
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Bold 2021 Predictions: A Stronger Housing Market Across the Board