It is easy to say that most of the world’s population is eager to move forward to 2021! With several recently approved COVID-19 vaccines on the market, there seems to be a light at the end of the tunnel. So what does the 2021 economy look like? Recently, more than 20 economic housing experts at the National Association of Realtor’s Real Estate Forecast Summit discussed a post-pandemic 2021. Overall, we should expect a post-pandemic economic rebound, improving job conditions and stable interest rates in 2021.
Predictions for 2021
- Gross Domestic Product (GDP): Growth of 3.5% in 2021 and 3.0% in 2022
- Annual unemployment rate: 6.2% next year declining to 5.0% in 2022
- Mortgage rates: An average 30-year fixed mortgage rates of 3.0% (2021) and 3.25% (2022)
- Home prices: The annual median home price will increase 8.0% in 2021 and 5.5% in 2022
- Housing starts: 1.50 million in 2021 and 1.59 million in 2022
- Working from home: The share of the U.S. workforce working from home will be 18% in 2021 – down from 21% in 2020 – and 12% in 2022
- Vacancy rates: Small declines in office and hotel vacancy rates in 2021 and a slight increase in retail vacancies
- Interest rates: 90% of experts predict no change next year; in 2022, most expect a 0.25% increase
It is an understatement to say that 2020 has been full of surprises and challenges for the U.S. economy. With this said, real estate consistently remained as one of the lone bright spots. For the year, home sales will reach 5.52 million. This marks the highest number of home sales since 2006. It appears that the new work from home model will remain for many companies, even after the pandemic. This will continue to bode well for highly desirable destinations like South Florida. As mentioned in previous articles, we may even begin to see larger companies relocate to The Sunshine State. Are you ready to move to South Florida? If so, contact Live South Florida Realty, Inc. today!