HOT OFF THE PRESS FROM
‘Tis the Season for Predictions: Realtor.com Is First
Economists predict a 5.7% U.S. price increase and 7% growth in sales, but a closer look at 9 Fla. metros finds varying
predictions. They range from a projected 1.5% sales growth (4.3% price) in Cape Coral-Fort Myers to 11.6% sales
growth (4.7% price) along the Space Coast.
By Kerry Smith, December 2 2020
ORLANDO, Fla. – What will the real estate market look like in 2021? In December, national economists start rolling out
their predictions, with the first, realtor.com, publishing their expectations first.
Amid COVID-19 uncertainty, 2021 will be a robust sellers’ market for U.S. buyers as home prices hit new highs (+5.7%)
and buyer competition remains strong, according to the realtor.com’s 2021 housing forecast.
Their economist expects inventory to make a slow yet steady comeback, providing buyers with some relief. However,
increasing interest rates and prices will make affordability a challenge throughout the year.
“The 2021 housing market will be much more ‘normal’ than the wild swings we saw in 2020,” says realtor.com Chief
Economist, Danielle Hale. “Buyers may finally have a better selection of homes to choose from later in the year but will
face a renewed challenge of affordability as prices stay high and mortgage rates rise. With less cash and no home equi-
ty, millennial and Gen Z first-time buyers will be impacted the most by rising home prices and interest rates. While wait-
ing until the fall or winter months of 2021 may mean more home options to choose from, buyers who can find a home
to buy earlier in the year will likely see lower prices and mortgage rates.”
Many of realtor.com’s predictions, however, assume the COVID-19 pandemic will be under control within the first half of
Realtor.com’s 2021 housing market forecast
• Mortgage Rates – Up to 3.4% by year end
• Existing Home Median Price Appreciation – +5.7%
• Existing Home Sales – +7.0%
• Single-Family Home Housing Starts – Up 9%