• March 7, 2021

Should You Buy or Sell a Home in 2021? Here’s What to Know - Odessa American: Real Estate

e-Edition Subscribe

Should You Buy or Sell a Home in 2021? Here’s What to Know

Print
Font Size:
Default font size
Larger font size

Posted: Thursday, February 18, 2021 12:00 am | Updated: 2:31 am, Thu Feb 25, 2021.

(StatePoint) While the roll-out of the COVID-19 vaccine has left a lot of question marks about the future of the U.S. economy at-large, analysts expect the housing market to remain strong and stable in the coming year.

“Despite the uncertainties of the pandemic, the housing market performed well in the second half of 2020,” says Sam Khater, Freddie Mac’s chief economist. “Low mortgage rates and the ability to work remotely continued to propel demand for housing, which is reflected in home sales reaching levels not seen in 15 years.”

Whether you’re a potential homebuyer, a current homeowner or considering selling, here are some of the biggest takeaways of Freddie Mac’s Quarterly Forecast:

• Interest rates are likely to remain low. The average 30-year fixed-rate mortgage (FRM) hit a record low over a dozen times in 2020. The low interest rate environment is projected to continue through 2021, with the 30-year FRM expected to average below 3 percent. Low rates are good news for buyers looking to purchase a home, and homeowners looking to reduce their mortgage payment through refinancing.

• Home sales to remain high. The demand for housing is expected to remain strong in 2021, creating a favorable market for sellers. Last year, low mortgage rates and the ability to work remotely drove up home sales (the measure of the number of homes sold every month). This year, home sales are expected to ride that wave, averaging 6.5 million for the year.

• House prices to grow moderately. In the second half of 2020, the high volume of home sales and low supply of housing drove up house prices. In 2021, house price growth is expected to moderate for the full year.

• Refinances to start declining. Low mortgage rates spurred refinance activity in 2020, boosting mortgage originations (the process in which borrowers apply for a home loan) to historic highs. As mortgage rates rise modestly in 2021, refinance activity should start to slow. “While many homeowners took advantage of these low rates in last year, evidence suggests that many lower income homeowners still have the opportunity to strengthen their financial position by refinancing,” says Khater.

For more insights on housing, visit freddiemac.com/research. For homebuying and homeownership resources, visit My Home by Freddie Mac.

Many of the trends that shaped the market last year, especially historically low mortgage rates, will continue to drive housing activity in 2021. As you embark on your journey towards your home goals, be sure to have a firm understanding of today’s market conditions.

*****

Photo Credit: (c) fizkes / iStock via Getty Images Plus

Odessa, TX

Current Conditions

Clear
44°
Humidity: 64%
Winds: SE at 8mph
Feels Like: 39°

Your Extended Forecast

Today

weather
High 65°/Low 43°
Sunny. Highs in the mid 60s and lows in the low 40s.

Tomorrow

weather
High 71°/Low 52°
Partly cloudy and windy. Highs in the low 70s and lows in the low 50s.

tuesday

weather
High 77°/Low 54°
Mostly cloudy. Highs in the upper 70s and lows in the mid 50s.

wednesday

weather
High 81°/Low 55°
Times of sun and clouds. Highs in the low 80s and lows in the mid 50s.
Online Features

Pet Central

pets

Having a pet is a lot of responsibility, and we’ll help by giving you lots of tips and tricks! More >>

Fitness

Fitness

Our fitness articles will help teach you how to work out with gym- and home-based exercises. More >>

Crosswords

Crosswords

Enjoy the crosswords challenge in our free daily puzzles, from the harder Sunday crossword to the quicker daily. More >>

Sudoku

Sudoku

Every Sudoku has a unique solution that can be reached logically. Enter numbers into the blank spaces so that each row, column and 3x3 box contains the numbers 1 to 9. More >>




  • ALL-ACCESS: Subscribe to our e-edition and premium website at myoaoa.com.
    You can read your daily newspaper without taking a walk to the driveway.
    Look back at yesterday's newspaper, or issues from months ago with our archive feature.
    Call circulation at 432-337-7314 to sign up today.