Now that we’re two months into the new year, it’s time to take a look at where real estate is headed in 2021! There will be much to look forward to in the coming months, and we are excited to report one of them is the real estate market!
As your local real estate expert in Glencoe, Winnetka, Highland Park, Deerfield, Northbrook, Lake Forest, Wilmette, Evanston, Glenview, Riverwoods, Bannockburn, and surrounding North Shore communities, I am including below three of the most important reasons we can be optimistic about real estate in 2021.
The economy will only improve
According to Tim Duy from the University of Oregon, “There is nothing fundamentally ‘broken’ in the economy that needs to heal…there was no obvious financial bubble driving excessive activity in any one economic sector when the pandemic hit…With Covid-19 cases surging again, it is understandably hard to look optimistically to the other side of this winter…Don’t let the near-term challenges distract from the economic stage being set for next four years.”
Interest rates will stay low
Mortgage rates hit all-time lows more than five times in 2020 and they are projected to remain low in 2021!
In the latest projections from Freddie Mac, interest rates for a 30-year fixed-rate mortgage are expected to remain at or near 3% next year. Not only will these low rates continue to make homes more affordable for North Shore home buyers, but they will drive more demand for housing in 2021.
Future home sales will grow
In the coming year, we can expect the economy to improve and mortgage rates to stay low, but we can also expect homes to continue appreciating as more buyers purchase homes in 2021!
According to Danielle Hale, Chief Economist at realtor.com, “We expect home sales in 2021 to come in 7.0% above 2020 levels, following a more normal seasonal trend and building momentum through the spring and sustaining the pace in the second half of the year.“
Both buyers and sellers in Glencoe, Winnetka, Highland Park, Deerfield, Northbrook, Lake Forest, Wilmette, Evanston, Glenview, Riverwoods, Bannockburn, and other North Shore communities are expected to be active in 2021, so don’t wait if you have a move you’d like to make or real estate goal to achieve!
Ready to get a jump on your home search on Chicago’s North Shore? Give me a call or reach out via email!
I look forward to working with you this year!
Janie Bress
Your North Shore Real Estate Expert
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