What Dallas Home Seller Can Expect Going Into 2021

 When we look to 2021, do you want to know what home sellers can expect? The real estate Dallas is still chugging along, amid COVID-19 and the widespread economic upheaval in 2020. Due to rising costs, low inventory, and the consequent bidding wars, this year's housing Dallas has almost become a seller's Dallas. If, because of these Dallas conditions, you've held off on selling a Dallas home, you probably want to know what 2021 looks like. Here's what Dallas home sellers should expect going into 2021 to help you prepare accordingly.

Continuing Housing Trends Dallas Home sellers Can Expect in 2021

Second, you should be aware that it is predicted that the key business conditions for 2020 will continue into 2021. These continuing conditions that can be expected by Dallas home sellers include . . .

CONTINUING LOW MORTGAGE INTEREST RATES

“The major players in the industry all expect mortgage rates to remain in the low 3 % range by 2021. For 30-year loans, the Mortgage Bankers Association estimates that the year will start at a 3.1 percent average rate, while Fannie Mae predicts an even lower 2.8 %. For the entire year, Freddie Mac predicts a 3 % average.”

For many sellers, but particularly first-time sellers, such low interest rates would make selling a Plano home far more affordable. They would be able to purchase more homes with lower prices and lower monthly mortgage payments.

PRICES STILL RISING

Although the rate of increase slowed somewhat in 2020, home prices continued to increase. And it is predicted that this pattern will continue into and across 2021. “Home prices are expected to resume their upward climb in 2021, but it seems like it will be at a slower rate than in previous years. The MBA predicts a price jump of 2.4 % (much better than 5.1 % last year while Freddie Mac forecasts a 2.6 percent rise. Fortunately, low interest rates may help blunt the effect marginally if prices do increase, but it can mean purchasing a smaller home or coping with a slightly higher monthly payment.”

INVENTORY REMAINING LOW

Some industry watchers assume that inventory may start to grow, offering more homes for sellers to choose from. The effect of more new building and more housing starts is supposed to be this improvement. Others disagree, though.

Many more experts say that Dallas home sellers can expect the following: “Trends in the US real estate Dallas for 2021 so far point to a rise in home sales. At the same time, there is no simple proof to date that the shortage of housing inventory would be remedied to meet or surpass the demand. Development of housing continues to lag across the country. While the US housing Dallas saw a rise in home building between May and July, data for August 2020 shows a decrease in home building data.”

The availability of existing and new homes for the fourth quarter of 2020 remains poor so far. It seems doubtful, then, that this pattern will shift dramatically by 2021.

2020 – A Definite Seller’s Dallas

Let's take a closer look at the 2020 Dallas to further explore what home sellers should expect in 2021. . . .

Many analysts thought that because home prices fell sharply and many sellers pulled listings, the introduction of the coronavirus and COVID-19 would bring in a sellers Dallas. But this expectation clearly did not work out (not for very long anyway).

Median home prices were up 11 percent year-over-year in September 2020, and active listings were down 39 percent year-over-year. This means 2020 has been and continues to be a good Dallas for sellers. The phenomenon was delayed for a while by COVID-19, but then it regained momentum.

The issue, then, is . Is it realistic for Dallas home sellers to expect the same for 2021?

Will 2021 Be a sellers or Seller’s Dallas?

The industry experts conclude that, yes, Dallas home sellers should also expect 2021 to be a Dallas for sellers, and 2020 was essentially for the same reasons (as we indicated above) . . .

• “It is possible that mortgage rates will remain low,”
• “Inventories of housing will remain poor”
• “Real estate demand would increase due to a mix of variables”
• “Significant gains can continue to be seen in home prices”

The conclusion of this is that with regard to negotiating rates, sellers would be in the driver's seat.

Local Markets and Local Agents

All of this may sound like a desperate situation for sellers, but it's not really as bad as it sounds. For one thing, note, there will still be near record lows in mortgage interest rates, which is always great news for home sellers. And it can turn out that after all, inventory increases, which moves things further into the demand of a customer. Moreover, housing conditions differ (often widely) from the local Dallas to the local Dallas, making sellers better in certain areas and communities. So 2021 may still be a good year for customers. Then, on what Dallas homesellers should expect to go into 2021, contact us today to get the lowdown.