Zillow released its forecast for the 2021 housing market and the conclusion: 2020 showed incredible strength and 2021 will be an even stronger market.
According to the report, housing demand is expected to surge once local economies fully 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,” the reported noted.
Zillow is forecasting a massive 21.9% increase in homes sold in 2021 vs 2020.
Their data crunchers are forecasting there will be 6.9 million homes sold, the biggest annual sales growth since 1983.
In addition, Zillow predicts buyers will have a harder time finding affordable homes.
Zillow reports home prices will rise in 2021 because there will be less housing supply and more demand from would-be homebuyers.
“Home price appreciation will reach its fastest pace since the Great Recession, as the inventory crunch continues to pit buyers against each other, competing for a scarce number of homes for sale, and we expect home price appreciation to exceed 10% at points in 2021,” according to the report.