Next Spring Homebuying Season Could Be The Biggest In Recent Memory

Next Spring Homebuying Season Could Be The Biggest In Recent Memory

December 21, 2020
Aerial view of a suburban U.S. neighborhood.

With the end of 2020 less than two weeks away, Zillow released its predictions for the 2021 housing market, which includes a prediction for what could be the "hottest" home shopping season in recent memory for spring 2021.

Zillow predicts that annual sales growth will be the highest in close to 40 years. The company believes that life and financial certainty will bring more sellers into the market to meet the heavy demand. It also believes that new innovations in technology will improve overall efficiencies in the ability to purchase a home.

"Zillow expects a perfect storm of market conditions to create the hottest spring shopping season in recent memory, with sales happening quickly and often above list price. It's likely COVID-19 vaccine distribution will be well underway in the U.S. by the spring, and local economies and schools should be in the process of opening back up," according to the report.

"Many will also have more certainty about whether their jobs will be performed remotely in the long term, adding buyers to the market who had been waiting for that to be settled. Add in expectations for mortgage rates to rise later in the year, and we could see a buyer frenzy as they look to lock in rates as low as possible."

Zillow reported that sales are on pace to grow 6% from 2019 despite a 'pause' in the heart of the spring shopping season. Additionally, Zillow forecasts a substantial 21.9% annual growth for a total of 6.9 million homes sold. The company's large optimism is based on the strength of the market today, according to the report.

Click here to read more from the report.

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