Looks like there’s no slowing this train down. According to a new report by Redfin, a record $2.53 trillion worth of home sales in America are expected in 2021. If we hit that number, it would reflect a 17 percent year-over-year gain that would mark the largest annual percentage increase since 2013.
The high demand and surging home prices is fueling the increase, and Redfin’s Chief Economist Daryl Fairweather notes that while home prices could grow more slowly if mortgage rates rise, that would result in a more balanced housing market, which could actually lead to more home sales.
“We expect 2021 to be an even more active year for the housing market than 2020 because homebuyers have a better sense of what the future looks like,” Fairweather said. “Employers are providing clarity on permanent remote-work policies, the economy is recovering and mortgage rates remain low. All of these factors mean that we’ll likely see even more buyers enter the market this year and in 2022.”
The South is expected to lead regional sales with an expected $1.09 trillion, followed by the West with $696.3 billion, the Midwest with $422.6 billion and the Northeast with $322.8 billion.