The U.S. housing market will get stronger through 2021 as the economy recovers from the pandemic-driven recession, while mortgage rates remain historically low, a major brokerage predicts. Annual home sales are expected to rise more than 10% in 2021, following a 5% rate of growth in 2020. Even as the pandemic hopefully nears its end, Americans will continue to buy homes that fit their new lifestye. As a result, 2021 will see more home sales than any year since 2006. The housing market will continue to be buoyed by historically low mortgage rates, according to Redfin, which predicts that the rates will rise slowly from 2.7% to around 3%. In the meantime, more new homes will be built in 2021 than in any year since 2006, according to Redfin’s forecast. New construction has already picked up since the pandemic began, and building permits increased 21% from September to November compared to the same period last year.

Despite high unemployment due to the coronavirus pandemic, home prices are expected to remain strong into 2021.

2021 Expected To Be The Strongest Housing Market In Over A Decade

President Donald Trump did great in reviving the U.S. economy.

  • Over 80 million Americans have voted for President Donald Trump in the 2020 election
  • However, with the widespread voter and election fraud, Joe Biden got the necessary electoral votes to win the presidency
  • The extent to the validity of Joe Biden winning the election is yet to be seen
  • We will update our viewers as new developments to this story get released
  • In the meantime, whoever the president is or which party is in control of Congress, the housing market is stronger than ever
  • The housing market is expected to be the best in 15 years in 2021
  • However, there are high-taxed states like Illinois, New York, California under incompetent governors’ control that will have a sluggish housing market in 2021

Red states like Florida, Texas, Arizona, Nevada, Georgia, North Carolina, Tennessee, Indiana, Wyoming, Montana, South Dakota are expected to have strong housing markets and rapid economic recovery from the coronavirus pandemic.

High Home Prices Will Become An Issue Due To 2021 Housing Market Forecast

Texas is one of the states with the highest in-migration numbers in the nation. Droves of Californians have been relocating to Texas for the past several years. Due to the mass in-migration in Texas, home prices have skyrocketed where many homebuyers are having a hard time finding affordable housing.

Dale Elenteny of Gustan Cho Associates said the following:

Historically low interest rates have allowed builders to finance their projects at lower costs, and because homebuyers are now more eager to buy in suburban and rural areas where land is cheaper than in the cities, there will be more areas where homes can be built profitably. It is expected more than 14.5 million Americans will migrate across county lines, the highest number since 2004. The normalization of remote work during the pandemic has set off a domino effect of increased homeownership. By the end of 2021, the American homeownership rate will reach 70% for the first time since 2005, according to Redfin’s predictions. At the metro level, San Antonio, Texas, Tucson, Arizona, and Tampa, Florida, will be the hottest housing markets in 2021, as major cities nearby, including Austin, Phoenix, and Miami, become unaffordable.

As a mass exodus of taxpayers is fleeing high-taxed states to lower-taxed states like Florida, Texas, Arizona, Nevada, home prices in these states are skyrocketing where it is becoming not affordable.