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The year 2021 has been an interesting one to say the least. And while most industries have suffered throughout the health crisis, the real estate industry has been very active throughout the year, all across the country. Buyers may have stalled early on when the pandemic first hit, but things quickly picked up shortly after.
As such, home prices have increased at a rapid pace throughout 2021, and mortgage rates have remained at historic levels. Buyer demand and ultra-low mortgage rates combined to create a very competitive real estate market.
What will happen in 2021? Will the same pace keep up in the new year? According to experts, the answer is yes.
Experts forecast an optimistic year for the housing market. Over the past 12 months, home prices across the US increased by 7.5%. And in 2021, they’re expected to increase at an even faster pace of 10.3%, according to real estate research firm Zillow.
As you can see, there is a general consensus that suggests that home prices will indeed rise over the next year.
Similar trends are being forecasted for the Pacific Northwest. In Washington State, home prices are expected to rise by 11.3% over the next year, while Colorado home prices are expected to increase by 10.2% over the same time period. And in Idaho and Oregon, home prices are anticipated to increase by 11.7% and 10.4% over the next 12 months, respectively.
While home prices may be on the rise, buyers can still take advantage of very low mortgage interest rates to make their home loans more affordable. Experts agree that interest rates are projected to remain at or near 3% in 2021, fueling stronger buyer activity.
This is a similar story to what we’ve seen throughout 2020, with mortgage interest rates remaining under 4.% since January, then remaining under 3.0% since August. Over the past 12 months, rates have hit record lows multiple times.
From these forecasts, it’s safe to say that mortgage interest rates will continue to remain very low throughout 2021.
Clearly, the current mortgage rate is the lowest it’s been, giving buyers more incentive to capitalize on these low rates and get into the real estate market in 2021.
Home sales are forecasted to increase in 2021 while interest rates remain low. This data further suggests that buyers will be actively in search of a home in the new year, which will continue to fuel the real estate market across WA, OR, CO, and ID, as well as the rest of the country.
With the exception of Freddie Mac, all other entities anticipate 2021 to see even more home sales than 2020.
Could 2021 be the year that you make a move and buy a home in WA, OR, ID, or CO? If so, you’ll need a mortgage to help finance your purchase. And Sammamish Mortgage would love to help!
Sammamish Mortgage has been in the mortgage industry since 1992 and has assisted many buyers in the Pacific Northwest. If you are looking for mortgage financing in Washington State, Colorado, Idaho, or Oregon, we can help. We offer plenty of mortgage programs with flexible eligibility criteria.
Contact us if you have any mortgage-related questions or concerns. If you are ready to move forward, you can view rates, obtain a customized instant rate quote, or apply instantly directly from our website.
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