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4 Housing Market Trends to Expect in 2021

Posted by Hanna Selman on December 21, 2020
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Housing Market Trends to Expect in 2021

As we enjoy the holiday season, it’s natural to begin thinking about the new year ahead and what it could mean for our future. In real estate terms, there are several housing market trends to expect in 2021 that are worth considering as you make those future plans.

Expected Inventory Bump in 2021

Good news is on the horizon for buyers in 2021! According to realtor.com, there should be an increase in the number of houses available for sale next year—especially in the last six months of 2021. This is good news for a few reasons.

First of all, there are more houses to see and therefore choose from. Second, buyers are more likely to find the features they really want in a home. They will also have more time to look at and think about their options. With more houses on the market, the pressure to make a quick decision is reduced.

More New Construction

The expected inventory bump will be a result of more than just sellers listing existing homes. One of the housing market trends to expect in 2021 that is exciting is the big boost in the construction of new single-family homes. It is projected that builders starting construction of these homes will jump 9 percent, which is much needed due to the shortage we had heading into 2020. The increased inventory is also expected to peak during the last six months of the year.

New construction does play a role in the cycle of housing market trends beyond inventory. As move-up buyers purchase these new homes, they become sellers adding to that existing inventory.

The Sales Price of Homes Continues to Rise

A trend that does, in fact, affect both buyers and sellers is the sales price of homes. The year 2020 has seen the list price of houses increase in a large part due to low inventory and high demand. This is good news for sellers, but may be less attractive news for buyers. Even though prices are expected to rise, the rate at which they do so will slow down.

Higher Mortgage Rates Expected

Buyers will be hit again with an expected increase in mortgage rates making those house payments slightly more expensive. It may be worth noting, the slow uptick is not expected until the second half of the year. In 2020, buyers have enjoyed all-time low mortgage rates around 2.7. By the end of 2021, rates are expected to be at 3.4 percent.


Even with expectations, there are several unknowns out there that will play a major role in market outcomes. The takeaway is there’s no time like the present! If you want to talk more about these trends and how they could affect your future moves, contact Ryan Roberts to start the conversation. His expert real estate knowledge goes beyond the trends and hits home in our area. Need to find out more about the Auburn-Opelika and Lake Martin communities? Spend a little time reading our blog.