2021 New Year Market Update
2020 was a year full of uncertainty and frustration, however, the housing market showed incredible strength. We expect 2021 will have similar demand as we respond to the challenges and changing preferences that emerged in 2020.
9370 Mt Vernon Circle (recently sold)
3412 Alabama Ave (currently for sale)
- Mortgage rates will remain historically favorable.
- • We are predicting interest rates will stay low with the potential for a slight increase. See these industry expert predictions from Time.
- Housing Demand will continue
- • Zillow predicts a 21.9% annual growth for a total of 6.9 million homes sold in 2021, the biggest annual growth since the early 1980s.
- Inventory will remain low until warmer temperatures or more vaccinations.
- • Homesnap predicts home buying demand will remain hot and inventory will continue to decline in 2021.
- • In 2020 total new listings only increased .22% while total sales increased 19.29%.
- Biden’s proposed credit for first-time homebuyers would increase housing demand.
- • Biden’s proposed $15,000 tax credit will likely provide further demand to an already hot market. The cost of entry for first-time buyers has always been a challenge and the tax credit will help. (The Washington Post)
- Demand for bigger homes will increase.
- • As work-from-home, school-from-home, and gym-from-home become more permanent choices in our lives, the demand for more space to fit our changing needs will increase.
- Home with health-related amenities will be highly sought after.
- • Whole house air filtration systems and water filtration systems will be things buyers will be asking about and wanting to put in their new homes.
- The suburbs will continue to be in high demand.
- • Fresh air, more yard space, bigger houses.
- Demand for new construction will continue.
- • Due to low inventory, some buyers are turning to new construction to get more of what they want in a home. However, we will continue to see the effects of COVID on the supply side… higher cost and longer delivery times for building materials. (Forbes)
- Relocation to a more affordable town or to be closer to family will be the number two reason for moving… number one will be demand for more physical space.
- Highest level ever of sight unseen offers – we believe more and more buyers will make offers on homes after only touring through video and seeing photos online.
8126 Ft Hunt Rd (new construction, recently sold)
We are looking forward to the 2021 market and are confident it will surely be an interesting year! Want to be one of the first to hear about upcoming listings and real estate news? Shoot us a message and we’ll add you to our mailing list. If you’re looking into home buying or selling, contact us for more information on how we can help you through the process!
- About the team
The Patterson Group is one of the most experienced and trusted real estate teams in the area, serving Alexandria, VA for over thirty years. We offer professional, hardworking, detailed and friendly service and a large network of contacts and resources accrued over our many years in Alexandria real estate. Comprised of seven Alexandria locals, six of whom are licensed realtors and three of whom are accredited staging professionals, The Patterson Group is passionate and knowledgeable about Alexandria, VA and here for all of your Northern VA real estate needs. Allow us to help you find your home here and discover all that the Alexandria lifestyle has to offer.
400 South Washington Street
Alexandria, VA 22314
703.310.6201
