Realtor.com Forecasts Sellers Will Get Top Dollar in 2021

SANTA CLARA — 2021 will be a robust sellers market as home prices hit new highs (+5.7%) and buyer competition remains strong despite uncertainty over Covid-19, according to the realtor.com 2021 housing forecast released this week. Inventory is expected to make a slow but steady comeback, which will give buyers some relief. However, increasing interest rates and prices will make affordability a challenge throughout the year.

Realtor.com is forecasting home prices and sales to be up 10.8% in the San Jose metro area.

“The 2021 housing market will be much more ‘normal’ than the wild swings we saw in 2020. Buyers may finally have a better selection of homes to choose from later in the year, but will face a renewed challenge of affordability as prices stay high and mortgage rates rise,” said realtor.com® Chief Economist, Danielle Hale. “With less cash and no home equity, millennial and Gen Z first-time buyers will be impacted the most by rising home prices and interest rates. While waiting until the fall or winter months of 2021 may mean more home options to choose from, buyers who can find a home to buy earlier in the year will likely see lower prices and mortgage rates.”

Realtor.com 2021 Housing Market Forecast

Mortgage Rates

Up to 3.4% by year end      

Existing Home Median Price Appreciation

+5.7%

Existing Home Sales

+7.0%

Single-Family Home Housing Starts

Up 9%

Homeownership Rate

65.9%

2021 Metro Housing Forecast (Top 100 Metro Areas) 

Metro

2021 Sales
Growth % y/y

2021 Price
Growth % y/y

Akron, Ohio

5.3%

4.2%

Albany-Schenectady-Troy, N.Y.

7.1%

3.7%

Albuquerque, N.M.

4.5%

3.2%

Allentown-Bethlehem-Easton, Pa.-N.J.

0.3%

4.9%

Atlanta-Sandy Springs-Roswell, Ga.

3.6%

6.2%

Augusta-Richmond County, Ga.-S.C.

5.1%

3.2%

Austin-Round Rock, Texas

8.4%

4.6%

Bakersfield, Calif.

10.5%

3.7%

Baltimore-Columbia-Towson, Md.

4.8%

6.2%

Baton Rouge, La.

6.5%

2.6%

Birmingham-Hoover, Ala.

3.7%

3.2%

Boise City, Idaho

9.8%

9.1%

Boston-Cambridge-Newton, Mass.-N.H.

5.4%

5.7%

Bridgeport-Stamford-Norwalk, Conn.

9.7%

7.8%

Buffalo-Cheektowaga-Niagara Falls, N.Y.

6.3%

4.0%

Cape Coral-Fort Myers, Fla.

1.5%

4.3%

Charleston-North Charleston, S.C.

9.5%

4.3%

Charlotte-Concord-Gastonia, N.C.-S.C.

13.8%

5.2%

Chattanooga, Tenn.-Ga.

4.9%

3.5%

Chicago-Naperville-Elgin, Ill.-Ind.-Wis.

8.3%

3.5%

Cincinnati, Ohio-Ky.-Ind.

4.9%

3.8%

Cleveland-Elyria, Ohio

6.7%

2.7%

Colorado Springs, Colo.

5.4%

6.2%

Columbia, S.C.

8.1%

5.4%

Columbus, Ohio

10.3%

7.6%

Dallas-Fort Worth-Arlington, Texas

11.3%

4.4%

Dayton, Ohio

0.7%

1.7%

Deltona-Daytona Beach-Ormond Beach, Fla.

5.4%

6.3%

Denver-Aurora-Lakewood, Colo.

12.5%

5.4%

Des Moines-West Des Moines, Iowa

6.9%

2.8%

Detroit-Warren-Dearborn, Mich

-2.8%

4.9%

Durham-Chapel Hill, N.C.

4.8%

4.3%

El Paso, Texas

10.6%

6.4%

Fresno, Calif.

8.9%

8.5%

Grand Rapids-Wyoming, Mich

9.1%

3.6%

Greensboro-High Point, N.C.

6.8%

4.1%

Greenville-Anderson-Mauldin, S.C.

4.3%

1.3%

Harrisburg-Carlisle, Pa.

14.4%

3.8%

Hartford-West Hartford-East Hartford, Conn.

12.1%

3.4%

Houston-The Woodlands-Sugar Land, Texas

5.3%

4.6%

Indianapolis-Carmel-Anderson, Ind.

4.1%

2.3%

Jackson, Miss.

5.3%

1.9%

Jacksonville, Fla.

9.4%

5.0%

Kansas City, Mo.-Kan.

12.1%

3.5%

Knoxville, Tenn.

7.9%

5.7%

Lakeland-Winter Haven, Fla.

5.1%

4.9%

Las Vegas-Henderson-Paradise, Nev.

12.0%

5.2%

Little Rock-North Little Rock-Conway, Ark.

1.9%

1.5%

Los Angeles-Long Beach-Anaheim, Calif.

10.0%

7.3%

Louisville/Jefferson County, Ky.-Ind.

7.0%

4.2%

Madison, Wis.

5.1%

2.1%

McAllen-Edinburg-Mission, Texas

10.0%

3.6%

Memphis, Tenn.-Miss.-Ark.

9.1%

4.8%

Miami-Fort Lauderdale-West Palm Beach, Fla.

3.7%

7.1%

Milwaukee-Waukesha-West Allis, Wis.

6.3%

6.0%

Minneapolis-St. Paul-Bloomington, Minn.-Wis.

0.5%

4.8%

Nashville-Davidson–Murfreesboro–Franklin, Tenn.

3.1%

4.8%

New Haven-Milford, Conn.

8.6%

3.1%

New Orleans-Metairie, La.

5.3%

4.2%

New York-Newark-Jersey City, N.Y.-N.J.-Pa.

-3.8%

0.5%

North Port-Sarasota-Bradenton, Fla.

10.3%

6.6%

Oklahoma City, Okla.

5.8%

3.0%

Omaha-Council Bluffs, Neb.-Iowa

1.4%

4.9%

Orlando-Kissimmee-Sanford, Fla.

10.1%

5.8%

Oxnard-Thousand Oaks-Ventura, Calif.

12.5%

5.5%

Palm Bay-Melbourne-Titusville, Fla.

11.6%

4.7%

Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.

7.0%

4.5%

Phoenix-Mesa-Scottsdale, Ariz.

11.4%

7.0%

Pittsburgh, Pa.

9.2%

4.1%

Portland-South Portland, Maine

2.0%

6.4%

Portland-Vancouver-Hillsboro, Ore.-Wash.

8.1%

6.2%

Providence-Warwick, R.I.-Mass.

4.5%

5.5%

Raleigh, N.C.

6.0%

3.9%

Richmond, Va.

6.2%

4.5%

Riverside-San Bernardino-Ontario, Calif.

12.4%

5.5%

Rochester, N.Y.

8.4%

5.1%

Sacramento–Roseville–Arden-Arcade, Calif.

17.2%

7.4%

Salt Lake City, Utah

7.5%

5.7%

San Antonio-New Braunfels, Texas

7.2%

4.3%

San Diego-Carlsbad, Calif.

11.3%

5.5%

San Francisco-Oakland-Hayward, Calif.

1.3%

8.4%

San Jose-Sunnyvale-Santa Clara, Calif.

10.8%

10.8%

Scranton–Wilkes-Barre–Hazleton, Pa.

6.7%

1.1%

Seattle-Tacoma-Bellevue, Wash.

8.9%

9.7%

Spokane-Spokane Valley, Wash.

3.8%

5.6%

Springfield, Mass.

8.1%

4.2%

St. Louis, Mo.-Ill.

3.4%

3.8%

Stockton-Lodi, Calif.

8.2%

6.1%

Syracuse, N.Y.

4.2%

4.6%

Tampa-St. Petersburg-Clearwater, Fla.

8.7%

7.5%

Toledo, Ohio

3.9%

3.3%

Tucson, Ariz.

3.4%

4.5%

Tulsa, Okla.

2.7%

2.0%

Urban Honolulu, Hawaii

5.2%

1.6%

Virginia Beach-Norfolk-Newport News, Va.-N.C.

8.1%

1.8%

Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.

5.2%

6.7%

Wichita, Kan.

2.4%

3.4%

Winston-Salem, N.C.

2.6%

4.4%

Worcester, Mass.-Conn.

3.5%

4.5%

Youngstown-Warren-Boardman, Ohio-Pa.

6.1%

4.5%