The 2020 U.S. Housing Market Recorded
Its Biggest Gains in 15 Years. What’s in store in 2021?
2020 was a tough year that negatively affected most areas of life on a massive scale. Despite the global pandemic, the U.S. housing market had a rather remarkable year. Statistically, the 2020 U.S. housing market boasted its biggest gains in 15 years.
In a recent Zillow report, 2020 U.S. housing values soared by almost $2.5 trillion. That is the highest growth experienced in a calendar year since 2005.
Strong demand and competition among eager, well qualified buyers was the driving force. In this seller’s market, home schooling, coupled with the work-from-home culture, created a need for larger living spaces. This prompted a significant rise in families selling their homes to buy bigger homes.
In the decade leading up to 2020, the real estate market was on a steady climb. Historically low rates, a strong economy and a booming building industry served as major contributors. Given the upward trend of the 2020 U.S. housing market, Real Estate behemoth Zillow foresees a stronger 2021. Omid Akale, founder of Twin Cities Portfolio Group Inc., agrees with Zillow Economist T. Manhertz’s notion that in 2020, strong competition among buyers drove prices to higher levels, and while many faced pandemic related financial hardship, those fortunate enough to enjoy financial stability took advantage of the low rates and hopped on zillow to find their dream homes.
Asked what is in store for the housing market in 2021, Omid Akale, Twin Cities Portfolio Group, responds: “With today’s housing market moving at a relentlessly fast pace, little to no inventory, low rates and stiff competition among buyers, I see a growth forecast with property values being pushed to much higher levels”