Q: What Should We Expect in 2021?

Here is what we can expect to see in our 2021 Upstate real estate market.

What does the new year have in store for our real estate market? Will it continue to be as strong as it was throughout most of 2020, or will we see some notable changes? The truth is, every indicator—both locally and nationally—points to another solid year for real estate, with projected gains of 5% to 10%. That said, prices will continue to rise over the course of 2021; the most conservative prediction we saw was a 2% increase in home prices throughout the year, while other experts argue it’ll be closer to 5%. 

“With the COVID vaccine now gradually being released to the public, consumer confidence could change.”

If you are a home seller, know that 2021 will more than likely be a great year to sell quickly for top dollar. Locally, our inventory will continue to lag behind demand, and prices will continue to go up, though perhaps not at the dramatic rate we saw last year. If you are a buyer, buckle up; the bidding wars will likely continue in the average and below average market price points, and you will still need to be ready to pull the trigger quickly. There are, however, a few variables that we should keep our eyes on, as they could potentially impact this year’s market.

With the COVID vaccine now gradually being released to the public, consumer confidence could change. We will have to wait to see what impact all of this plus potential changes by the incoming government will have on employment as this is always a key economic driver. What about interest rates? They hovered at historic lows throughout 2020, and we expect them to stay low. That, of course, will continue to be a huge boost to buyers’ purchasing power. 

As mentioned above, inventory is projected to remain tight but could bump upward if we see an increase in foreclosures hitting the market. Thankfully, we do not expect that we will see a large increase in foreclosures this year as that hurts the overall economy in many ways and banks/the government will likely work to prevent that from happening. Since our market is so starved for inventory, any foreclosed homes that do hit the market will likely be absorbed quickly. 

If at any time in 2021 you are considering selling your home, buying a home, or investing in real estate, go ahead and reach out to us now by phone or email so we can start making plans for your upcoming real estate goals. As your Upstate real estate resource, we would love to get the conversation started. We look forward to hearing from you soon!